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April extends bond investors' woes

Dow Jones ·  May 1, 2022 23:48  · Markets

Unity Software(U.US) reported fourth-quarter financial results after the market close on Monday. Here's a rundown of the report.Q4 Earnings: Unity said fourth-quarter revenue increased 35% year-over-year to $609 million, beating the consensus estimate of $562.71 million. The company reported a quarterly loss of 66 cents per share.

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    Most of the redirect I am reading is confined to a conventional interest rate and inflationary environment. This is not where we are as interest rates have been low for an abnormal amount of time as well, the governments purchasing of bonds and mortgage backed securities is not typical either. Now we have to weigh in whether or not the governments unwinding of these products will affect the markets/economy.
    Keep in mind as we hear that businesses will feel the impact of interest rates on their earnings, yes they will. However, companies invest their daily receipts into Certificates of deposit, money Markey accounts and bonds to a degree. Therefore I think there is a trade off as corporate America will benefit from the rising rates as they can increase income. That being said there is that point where companies are going to need to increase their debt and at that point you will see a capitulation where the interest on new debt will outpace the interest earnings. Mr. & Mrs. Retired Main St. will get a boost to their income through fixed income assets such as certificate of deposit, bonds Corp & Municipal and money market accounts. Anyone retired invested in stocks should be reevaluating their portfolios as well as those who will be entering retirement in the next 5 to10 years. .

    May 2, 2022 09:26

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