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Recent economic turmoil has had the positive effect of giving fixed-income back its traditional defensive kick, says Western Asset’s Anthony Kirkham. Investors should be ready to reallocate as needed to take advantage of the renewed diversification benefits.
Credit and equity markets both suffered a very bad 2022, as the collapse of negative correlation between stock and bond prices left no safe haven for investors. But 2023 could be a big year for bonds, and experts say investors waiting on the sidelines risk missing out.