John Hancock's Miskin Sees Value in High-Grade Bonds

The video discusses the current lack of risk pricing in the market, highlighting indicators like the VIX, high yield spreads, and the S&P 500 P/E ratio. It suggests trimming risk-heavy portfolios and reallocating to higher quality fixed income. The video also explores defensive trades amid persistent inflation, noting tech stocks as potential safe havens. In the bond market, high yield bonds are outperforming, presenting opportunities in investment grade bonds with favorable yields and durations.

What is the current state of the market according to the transcript?

• Volatility is extremely high.

• The market is at a low valuation.

• There is a lack of risk being priced in.

• High risk is being priced in.

What is suggested as a strategy for portfolios that have done well this year?

• Increase risk exposure.

• Invest in tech stocks.

• Trim risk and redeploy into higher quality fixed income.

• Focus on short-term bonds.

In the context of inflation, which type of stocks are considered defensive?

• Energy stocks

• Consumer goods stocks

• Financial stocks

• Tech stocks

Which part of the bond market is currently the best performing?

• Investment grade bonds

• Municipal bonds

• Government bonds

• Triple C high yield bonds

What is the suggested duration strategy for bonds in the current market?

• No duration preference

• Short duration

• Intermediate duration

• Long duration