Dimon Predicts 5% Treasury Yields as Advisors Consider Alternatives to Fixed Income
Deep into this unprecedented bull market, everyone seems to be looking for signs that it will come to an end. Too much of a good thing has made us all nervous as long-tailed cats in a room full of rocking chairs.
We all know it can’t go on forever. Experts are coming out of the woodwork examining the tea leaves to tell us when to retreat to the relative safety of…What? Fixed income? As analysts sit in their crow’s nests watching for the yield curve to invert, JPMorgan’s Jamie Dimon warns of 10-year treasuries reaching the 4 or 5% mark. AND he expects this bull to stick around one or two or three more years.
It feels like we’re on a tight rope, and rising rates make fixed income investments unattractive. A squeeze like this demands fresh thinking. We’re fielding more and more advisor questions about no-load structured annuities and fixed index annuities offering upside potential with downside protections.
This is notable because these products haven’t traditionally been available to RIAs, nor have they typically indicated a need for them.