Roger Aliaga-Diaz, Vanguard's chief economist, Americas, and head of portfolio construction, explains why investors should maintain their bond positions even in an environment of rising interest rates.
In the United States, a more recent trend of daily COVID-19 vaccinations approaching 1 million reaffirms our outlook for GDP growth above 5% in 2021. Additional fiscal stimulus would introduce the potential for further upside to growth.
Amid hope that COVID-19 vaccines drive immunity and enliven economic activity, investors are starting to wonder what happens when 'whatever it takes' fiscal and monetary policy gives way to an unwinding of bold actions. But that may not happen anytime soon.