Value Is a Poor Timing Tool - Title Image

Value Is a Poor Timing Tool

Markets often overshoot, and just because things are cheap doesn’t mean they can’t get cheaper.

March 20, 2020   |    By Scott Minerd, Global CIO


Is now the time to buy?


Video

Scott Minerd calls in to Bloomberg TV to discuss the policy response to the crisis.


High-Yield Corporate Bond Spreads Widen

High-Yield Corporate Bond Spreads Widen

Source: Guggenheim Investments, Bloomberg. Data as of 3.18.2020. *Percentiles calculated since inception (Jan. 1994). Shaded areas represent periods of recession. 1. Values between June 2008 and July 2009 are averaged.

Investment-Grade Corporate Bond Spreads Widen

Investment-Grade Bond Spreads Widen

Source: Guggenheim Investments, Bloomberg. Data as of 3.18.2020. *Percentiles calculated since inception (June 1989). Shaded areas represent periods of recession. 1. Values between June 2008 and July 2009 are averaged.

What is a value security these days?

 

Is there more downside in equities?

 

How should bailouts or aid to individual companies be structured?

 

Does the best stimulus package involve sending direct checks to families?

 

Important Notices and Disclosures

This material is distributed or presented for informational or educational purposes only and should not be considered a recommendation of any particular security, strategy or investment product, or as investing advice of any kind. This material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. The content contained herein is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.

This material contains opinions of the author, but not necessarily those of Guggenheim Partners, LLC or its subsidiaries. The opinions contained herein are subject to change without notice. Forward looking statements, estimates, and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable, but are not assured as to accuracy. Past performance is not indicative of future results. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information.

Investing involves risk, including the possible loss of principal. Investments in fixed-income instruments are subject to the possibility that interest rates could rise, causing their values to decline. High yield and unrated debt securities are at a greater risk of default than investment grade bonds and may be less liquid, which may increase volatility.

Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Partners Europe Limited, GS GAMMA Advisors, LLC, and Guggenheim Partners India Management.

©2020, Guggenheim Partners, LLC. No part of this article may be reproduced in any form, or referred to in any other publication, without express written permission of Guggenheim Partners, LLC.


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