‘Some more banana skins in front of us’: Why investors may want to increase exposure to bonds

Investors may want to get back to the basics when it comes to navigating the stock market volatility.

According to F/m Investments CEO Alex Morris, they should consider increasing their exposure to bonds.

“Particularly on the short end of the curve … there’s a lot of safe haven to be had there,” Morris said on CNBC’s “ETF Edge” this week. “If you look at where the equity market is going, you didn’t like the wipeout of a couple of weeks ago — there’s some more banana skins ahead of us.”

His comments came from the site of Miami’s Future Proof conference, where financial advisors and wealth management executives traded ideas and discussed technology, including using generative artificial intelligence.

Morris’ firm Provides investors with access to “innovative” strategies, which includes mitigating risks, according to the F/m Investments website.

Morris, who is also the firm’s chief investment officer, sees the economic backdrop and tariff risks as another reason to buy bonds.

“If [DC] policy stays where it is, the short end of the curve is going to be a great place to be,” Morris added.

TCW’s managing director Jeffrey Katz, who also attended the conference, sees benefits in fixed income right now, too. “Bonds are acting as they should in the context of a 60/40 portfolio,” he told “ETF Edge.”

Katz’s firm is behind the TCW Flexible Income ETF, which has been around since November 2018.

As of Feb. 28, FactSet shows the exchange-traded fund’s top holdings included U.S. Treasury notes yielding above 4%. It is also rated four stars by Morningstar.

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