The Clap
Investors are optimistic that the Fed, which is expected to hike interest rates by another 0.75%, will slow down hikes going forward.
The Deets
Around $980 million were invested into the SPDR Bloomberg High Yield Bond ETF (JNK) on Friday.
Rate Hikes
If the Fed continues to aggressively hike interest rates to combat inflation, high-yield Bond ETFs will decline. According to Independent Advisor Alliance’s CIO, it is a “risky time to be buying risk assets.”
Now What
Investors will be sitting on the edge of their seats, waiting to see the Fed’s outlook on interest rates in the coming week.
