Investment in investment-grade corporate bonds cannot be underestimated with the help of the power of the \”Three-Body Problem\”

The recent Netflix remake of the Chinese science fiction masterpiece \”The Three-Body Problem\” became the most watched series in the world when it first aired. The magic of being unable to stop watching one episode after another is based on: the persuasiveness of scientific logic, the strength of each camp in the puzzle-solving process The intelligence power and the emotional tension of the protagonist\’s group of emotions tug at the audience\’s heartstrings. The three highlights have become the secret to the success of this scene.

The recent Netflix remake of the Chinese science fiction masterpiece \”The Three-Body Problem\” became the most watched series in the world when it first aired. The magic of being unable to stop watching episode after episode is based on: the persuasiveness of scientific logic and the intelligence power of each camp in the puzzle-solving process. As well as the emotional tension of the protagonists\’ emotions, the three highlights that tug at the audience\’s heartstrings have become the secret to the success of this scene.
As the saying goes, drama is like life. Strictly speaking, the investment market is also a stage. The essence of winning in the investment market is similar to that of a global drama.
Corresponding to the above three points in investment are the ability to interpret the general manager\’s logic, the ability to grasp market information, and the ability to understand market sentiment.
A separate analysis of the above three investment forces: the Federal Reserve is expected to start cutting interest rates this year, funds continue to pour into investment-grade bonds, and investment-grade bonds have high defensive characteristics relative to stocks.
Investment grade corporate bond funds will be a target that investors should not miss in their asset allocation this year.
During the decline in U.S. Treasury yields, investment-grade corporate bonds performed better. Yrieix de James, manager of the BNP Paribas Perpetual High-Rated Corporate Bond Fund (the source of the fund\’s dividend distribution may be principal).
First of all, let’s talk about the interpretation of the general manager’s logic. The manager of the Lifaba Sustainable High-rated Corporate Bond Fund (the source of the fund’s dividend distribution may be the principal) said that as the labor market cools down, although the trend of declining inflation is not “direct There may be slight ups and downs in the middle, but the overall economy is still showing a downward trend this year. The overall economy should not escape the \”soft landing\” framework this year. It is expected that the Federal Reserve will start to cut interest rates this year to avoid keeping U.S. interest rates at the high level of nearly 15 years.
Yrieix further explained that cutting interest rates will lower corporate debt-raising costs, leading to lower yields and a rebound in bond prices.
According to Bloomberg statistics, the average performance of corporate bonds during the same period from June 2015 to April 2023 and from mid-October to the end of December 2023 was better than other debt types.
The yield rate is eye-catching, the funds are quietly converted from stocks to bonds, and the market information is controlled.
It is known that the stock god Buffett reads six newspapers and reads a large number of reports every day. This is his long-term basic skill in grasping market trends. However, it is unrealistic for ordinary investors to expect themselves to spend so much effort to understand the market every day, especially The market is changing rapidly. Only by reorganizing fragmented micro-information in an economically logical way can we see the macro trend clearly. This is what professional investment institutions are good at.
Yrieix explained the market trend this year with his observation of funds. Although the asset performance this year is that stocks are better than bonds, funds have actually been quietly converted from stocks to bonds. \”A large amount of institutional funds have flowed into investment-grade bonds. This year\’s trend includes retirement funds, insurance The main reason why companies and others continue to buy investment-grade bonds is that the current yield of about 5.5% is much higher and more attractive than in the past low interest rate era,\” Yrieix said.
Strong defensive characteristics. Third, in terms of understanding the influence of market sentiment, the market is often overly optimistic in bull markets and overly pessimistic in bear markets. Understanding the gap in expectations is the main reason why professional investors can widen the gap with retail investors.
Yrieix believes that the market performance this year has been very hot. The relatively high valuation of stock assets means that any bad news may trigger investors\’ sensitive nerves and be amplified for interpretation; therefore, the relatively small fluctuations in bond prices can protect assets, especially investment grade The current relatively high yield on corporate bonds is an option for investors who desire steady returns.
In summary, regardless of the interest rate cutting trend on the policy side and the trend of converting stocks into bonds on the capital side, analysis points out that investment-grade corporate bond funds will benefit.
BNP Paribas Permanent High-Rated Corporate Bond Fund (the source of the fund\’s dividend distribution may be the principal). The core holdings are investment-grade corporate bonds and have the advantage of monthly dividend distribution. In the current environment, it not only provides a relatively stable income outlook but also There is potential for capital gains! Warning BNP Paribas Securities Investment Consulting Co., Ltd. 71st Floor, No. 7, Section 5, Xinyi Road, Taipei 110 Tel: (02) 7718-8188 (112) Financial Management Investment Consulting No. 013 [French BNP Paribas Investment Consulting is independently operated Management] This overseas fund has been approved by the Financial Supervisory Commission or declared effective for raising and selling in the country, but this does not mean that there is no risk.
The past manager performance of the fund management company does not guarantee the minimum investment return of the fund; the fund management company is not responsible for the profits and losses of the fund except for fulfilling the duty of care of a good manager, nor does it guarantee the minimum return. The expenses that the fund should bear (including distribution fees) Investors should read the relevant information in detail in the fund\’s prospectus and investor instructions before subscribing.
BNP Paribas Investment Consultants does not provide advice based on personal situations and has tried its best to provide correct information. Investors should make their own investment judgments.
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MKT-2024-0404

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