Per PGIM Investments
Chart Highlights
- The Federal Reserve’s interest rate hiking cycle may be nearing its end amid signs of receding inflation.
- Broad-based market rallies followed the conclusions of the past four rate hiking cycles.
Key Takeaway
It may be an opportune time for investors to add to both their fixed income and equity allocations.
Bloomberg Global Aggregate Bond Index is an unmanaged index of global investment-grade fixed income markets. Bloomberg High Yield Corporate covers the USD-denominated, non-investment grade, fixed rate, taxable corporate bond market. Bloomberg U.S. Aggregate Bond Index represents securities that are SEC-registered, taxable, and dollar denominated. It covers the U.S. investment-grade, fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. Bloomberg U.S. Credit Index measures the performance of US investment grade taxable corporate, fixed rate, and government related fixed income securities. Bloomberg U.S. Treasury Index includes all publicly issued, U.S. Treasury securities that have a remaining maturity of 10 or more years, are rated investment grade, and have $250 million or more of outstanding face value. JP Morgan EMBI Global Diversified Index is an unmanaged index of emerging market debt, including USD-denominated Brady bonds, eurobonds, and traded loans issued by sovereign and quasi-sovereign entities. It limits the weights of those index countries with larger debt stocks by including only a specified portion of these countries’ eligible current face amounts of debt outstanding. MSCI All Country World Index is a market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world and is comprised of stocks from both developed and emerging markets. MSCI Emerging Markets Index is an equity index covering 23 countries representing 10% of world market capitalization. Russell 1000 Index consists of the 1,000 largest securities in the Russell 3000 Index, which is composed of the 3,000 largest U.S. securities, as determined by total market capitalization. Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index. Russell Mid Cap Index is a market capitalization-weighted index representing the smallest 800 companies in the Russell 1000 Index. S&P 500 Index is an unmanaged index of 500 common stocks of large U.S. companies, weighted by market capitalization.
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