What is the best fixed income investment for 2024?
The top picks for 2024, chosen for their stability, income potential and expert management, include Dodge & Cox Income Fund (DODIX), iShares Core U.S. Aggregate Bond ETF (AGG), Vanguard Total Bond Market ETF (BND), Pimco Long Duration Total Return (PLRIX), and American Funds Bond Fund of America (ABNFX).
- High-yield savings accounts.
- Certificates of deposit (CDs)
- Bonds.
- Money market funds.
- Mutual funds.
- Index Funds.
- Exchange-traded funds.
- Stocks.
Vanguard High-Yield Corporate Fund Investor Shares
The Vanguard High-Yield Corporate Fund (VWEHX) takes the top spot on our list of the best high-yield bond funds for March 2024 thanks, largely, to its low expense ratio.
- Legal & General Global Technology Index Trust.
- Fidelity Index US Fund.
- Fidelity Global Technology Fund.
- Jupiter India Fund.
- Legal & General Global Equity Index.
- Fundsmith Equity Fund.
- Fidelity Global Dividend Fund.
- Rathbone Global Opportunities Fund.
- ICICI Prudential Regular Savings Fund.
- Canara Robeco Conservative Hybrid Fund.
- Kotak Debt Hybrid Fund.
- SBI Conservative Hybrid Fund.
- High-yield savings accounts.
- Certificates of deposit (CDs) and share certificates.
- Money market accounts.
- Treasury securities.
- Series I bonds.
- Municipal bonds.
- Corporate bonds.
- Money market funds.
Aris Water Solutions, Inc. (NYSE:ARIS) is one of the stocks that can double in 2024, along with Wayfair Inc. (NYSE:W), Match Group, Inc. (NASDAQ:MTCH), and Palantir Technologies Inc.
Stocks and bonds deliver positive returns and cash underperforms both as the Fed pivots to rate cuts. Stocks and bonds may both be poised for success in 2024. Easing inflation and a pivoting Fed should reduce headwinds that have faced both asset classes in recent years.
Vanguard's active fixed income team believes emerging markets (EM) bonds could outperform much of the rest of the fixed income market in 2024 because of the likelihood of declining global interest rates, the current yield premium over U.S. investment-grade bonds, and a longer duration profile than U.S. high yield.
Fixed income valuations, and a different inflation profile to the past few years, should make 2024 a good year for bonds. However, as with this year, it will not be all plain sailing. That's why a dynamic approach and strong country and company selection will be needed to deliver on the promise.
Will 2024 be good for stocks?
As a whole, analysts are optimistic about the outlook for stock prices in 2024. The consensus analyst price target for the S&P 500 is 5,090, suggesting roughly 8.5% upside from current levels.
The top two performers of January 2024 were Jupiter's India and India Select funds, both with over 8% growth. But, despite the Indian Nifty Fifty index hitting record highs, they were the only two India-focused strategies in the top 10, and two of only three in the top 50.
- Jupiter India.
- Fundsmith Equity.
- L&G Global Technology Index.
- Vanguard LifeStrategy 80% Equity.
- Royal London Short Term Money Market.
- HSBC FTSE All World Index.
- Vanguard US Equity Index.
- Fidelity Index World.
- Exact Sciences (NASDAQ:EXAS) is one of the better-known stable stocks thanks to its leading product, Cologuard. ...
- Another one of the top stable stocks to buy and hold is Alibaba (NYSE:BABA).
- Michael Burry, made famous in The Big Short, is also big on Alibaba at the moment.
If you were to stay invested for a shorter duration, say 20 years, you'd invest Rs 2,40,000, but your portfolio value would be Rs 9.89 lakh. A decade-long investment of Rs 1,000 per month would equal Rs. 2,30,038, as compared to Rs. 1,20,000 invested over the same period.
| Ticker | Name | 5-year return (%) |
|---|---|---|
| PBFDX | Payson Total Return | 16.58% |
| CFGRX | Commerce Growth | 16.48% |
| SSAQX | State Street US Core Equity Fund | 16.45% |
| BUFEX | Buffalo Large Cap | 16.16% |
While the quest for a 6% return on your savings today may require some effort, CDs and high-yield savings accounts are two viable options to consider. These accounts offer competitive interest rates, safety through FDIC insurance and ease of management.
Next Big Thing in Investing: Artificial Intelligence
The tech space is always worth watching when it comes to seeking out the next big thing in investing. Right now it seems that artificial intelligence (AI) is driving that bus and will be for the foreseeable future.
Treasury Bonds
Investors often gravitate toward Treasurys as a safe haven during recessions, as these are considered risk-free instruments. That's because they are backed by the U.S. government, which is deemed able to ensure that the principal and interest are repaid.
1. Amazon. Amazon (NASDAQ: AMZN) is a the ideal growth stock because it's a leader in two high-growth markets: e-commerce and cloud computing. The company also is investing heavily in the hot area of artificial intelligence (AI), which is boosting earnings in two ways.
What are the hot stocks going into 2024?
We picked 10 stocks which analysts are specifically recommending investors in 2024 because of election-related catalysts. Some top names include JPMorgan Chase & Co. (NYSE:JPM), Exxon Mobil Corp (NYSE:XOM) and Pfizer Inc (NYSE:PFE).
| Company (ticker) | 5-Year Avg. Yearly EPS Forecast |
|---|---|
| Live Nation Entertainment, Inc. (LYV) | 80.3% |
| Nvidia Corporation (NVDA) | 36.1% |
| Full Truck Alliance Co. Ltd (YMM) | 35.9% |
| Yelp Inc. (YELP) | 29.0% |
The top picks for 2024, chosen for their stability, income potential and expert management, include Dodge & Cox Income Fund (DODIX), iShares Core U.S. Aggregate Bond ETF (AGG), Vanguard Total Bond Market ETF (BND), Pimco Long Duration Total Return (PLRIX), and American Funds Bond Fund of America (ABNFX).
Macro and fixed income hedge funds favoured in 2024
In 2024 macro visibility should improve, setting more favourable conditions for hedge funds to generate excess returns (alpha). Over the last two years, hedge funds have displayed more resilient returns with lower volatility compared to traditional asset allocations.
"Short-term bonds could be a safer bet in 2024, offering lower interest rate risk compared to long-term bonds," says Kovar. "They provide a relatively stable income stream with less exposure to market volatility."
