Hike rates

Q1 2022 Asset Allocation Committee Outlook: Raise Rates and Carry On

This document is provided for informational purposes only and nothing in this document constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. This document is of a general nature and is not addressed to any category of investors and should not be considered as individualized, a recommendation, investment advice or a suggestion to undertake or refrain from any action related to investment. Neuberger Berman does not provide this material on a fiduciary basis and has a financial interest in the sale of its products and services. Neuberger Berman and its employees do not provide tax or legal advice. You should consult your accountant, tax advisor and/or attorney for advice regarding your particular circumstances. The information is obtained from sources believed to be reliable, but there is no representation or warranty as to its accuracy, completeness or reliability. All information is current as of the date of this document and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Neuberger Berman products and services may not be available in all jurisdictions or to all types of customers. Investing involves risk, including possible loss of capital. Investments in hedge funds and private equity are speculative and involve a higher degree of risk than more traditional investments. Investments in hedge funds and private equity are intended for sophisticated investors only. Indices are unmanaged and not available for direct investment. Past performance is not indicative of future results.

The views expressed here are generally those of Neuberger Berman’s Asset Allocation Committee, which includes professionals from multiple disciplines, including equity and fixed income strategists and portfolio managers. The Asset Allocation Committee reviews and establishes long-term asset allocation models, establishes preferred tactical allocations for short-term asset classes and, upon request, reviews asset allocations for large diversified mandates and makes client-specific asset allocation recommendations. The opinions and recommendations of the Asset Allocation Committee may not reflect the opinions of the company as a whole, and Neuberger Berman advisors and portfolio managers may recommend or take positions contrary to the opinions and recommendations of the Asset Allocation Committee. asset allocation. The opinions of the Asset Allocation Committee do not constitute a prediction or projection of future events or future market behavior. This material may include estimates, outlooks, projections and other “forward-looking statements”. Due to various factors, actual events or market behavior may differ materially from the views expressed.

The length and characteristics of past market/economic cycles and market behavior, including bull/bear markets, are not indicative of the length and characteristics of current or future market/economic cycles or behavior. Nothing herein is a prediction or projection of future events or future market behavior. Due to a variety of factors, actual events or market behavior may differ materially from the views expressed or historical results.

The value of a bond may fluctuate with interest rates, market conditions, credit quality and other factors. You may realize a gain or loss if you sell your bonds before maturity. Of course, bonds are subject to the credit risk of the issuer. If sold before maturity, municipal securities are subject to gains/losses depending on the level of interest rates, market conditions and the credit quality of the issuer. Income may be subject to alternative minimum tax (AMT) and/or state and local taxes, depending on the investor’s state of residence. High-yield bonds, also known as “junk bonds,” are considered speculative and carry a higher risk of default than investment-grade bonds. Their market value tends to be more volatile than higher quality bonds and can fluctuate with interest rates, market conditions, credit quality, political events, currency devaluation and market conditions. other factors. High yield bonds are not suitable for all investors and the risks of these bonds must be weighed against the potential rewards. Neither Neuberger Berman nor its employees provide tax or legal advice. You should contact a tax advisor regarding the suitability of tax-exempt investments in your portfolio. Government bonds and treasury bills are backed by the full confidence and credit of the United States government as to the timely payment of principal and interest. Investing in the shares of even the largest companies involves all the risks of a stock market investment, including the risk that they will lose value due to general market or economic conditions. Small and mid capitalization stocks are more vulnerable to financial and other risks than stocks of large companies. They also trade less frequently and in lower volume than stocks of larger companies, so their market prices tend to be more volatile. Investing in foreign securities involves greater risks than investing in securities of U.S. issuers, including currency fluctuations, interest rates, potential political instability, restrictions on foreign investors, less regulation and less market liquidity. The sale or purchase of commodities is usually done through futures contracts or options on futures contracts, which involve significant risks, such as price volatility, high leverage and risk. illiquidity

This document is published on a limited basis by various worldwide subsidiaries and affiliates of Neuberger Berman Group LLC. Please visit www.nb.com/disclosure-global-communications for specific entities and jurisdictional limitations and restrictions.

The “Neuberger Berman” name and logo are registered service marks of Neuberger Berman Group LLC.

© 2009-2022 Neuberger Berman Group LLC. All rights reserved.

Original post

Editor’s note: The summary bullet points for this article were chosen by the Seeking Alpha editors.