2 “Sleeper” 7.5%+ Yielding Funds Set to Soar as Powell Cuts Rates

Here’s a wild prediction for the rest of 2024: “sleepy” (but very high yielding) emerging-market bonds will clobber today’s high-flying AI stocks. Sounds ridiculous, right? Well, it’s one of those seemingly weird calls that’s absolutely on the table after the first Fed rate cut drops—a date that, if futures traders are right, will arrive as soon as June: Interest Rates Are About to Pull a 180 Source: CME Group Here’s where emerging-market bonds come in: When rates drop, the US dollar gets banged up—it always does. That will light a fire under EM bonds. And given that the dollar has been en fuego for the past decade, the greenback’s drop could very well be swift.… Read more