Half of the debt in investment grade corporate bond funds teeters just above junk. If the economy slows and downgrades force passive fixed income managers to sell, will ETF investors feel the pinch?
Jeffrey Gundlach countered President Donald Trump’s claim that he’s presiding over the strongest economy ever. The growth is debt-based, he said.
There’s peril ahead for both stocks and bonds.
The benefits of an ETF wrapper can apply as much to actively managed strategies as they do to their passive counterparts.
