Expected-return change log
How changes in the markets moved expected returns, explained in plain words.
Corporate bonds look better, long-term Treasuries less so
Corporate bond yields have risen faster than Treasury yields, so corporate bonds now pay clearly more. Long-term Treasuries, meanwhile, pay barely more than medium-term ones. So expected returns rose for HYG and LQD and fell for IEF and TLT.
Read moreThe safe interest rate rose, and every expected return rose with it
The 10-year US Treasury yield, the return you can get with almost no risk, rose from 4.76% to 5.24% in a month. Every investment has to beat it, so expected returns rose by the same 0.48 points: the S&P 500 from 8.52% to 9.00%.
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