In early December, MFS Investment Management pulled together several of its top experts to share year-end thoughts on the markets and trends affecting them. Erik Weisman, Ph.D., and a member of MFS’ fixed-income group, explains that we are now, of course, experiencing volatility spikes after enjoying recent all-time low volatility in the markets.
“The housing overhang needs to clear,” Weisman explains.
“We face a very challenging environment going forward,” he says. “We have a long way to go before a depression, however, and we’re doing all the right things today.”
Mike Roberge, MFS chief investment officer for U.S. Investments, believes that selective fixed-income markets offer compelling value. He also says the equity market is attractive from a long-term perspective, though volatility remains high.
Municipal bonds are relatively cheap compared with U.S. Treasuries, according to Roberge, and high-quality corporate bonds offer investors a yield premium over U.S. Treasuries — with a bias toward high-quality.