YieldCurveComparison
Over the last three months, we have seen a flattening of the Treasury yield curve as short-term rates have risen and the yield on the 10‐year Treasury has declined. Historically, the flatter the yield curve gets, the more volatility bond investors can expect.

The Fed’s first rate hike, set to happen next year, in our experience may mean higher short‐term rates. Investors who have piled into short-term bond funds seeking safety may be at risk since rates have an inverse relationship to prices. If short term rates go up, history tells us short-term bond prices could go down.

We believe the treasury yield will continue to flatten, with short-term rates moving higher as long-term rates remain relatively stable. As such, tactical bond strategies may help to mitigate interest rate risk. Strategies that seek to remove interest rate risk may also help investors mitigate risk and exploit opportunities in the bond market.

Past performance is not indicative of future results. The opinions expressed are those of the Clark Capital Management Group Investment Team. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Nothing herein should be construed as a solicitation, recommendation or an offer to buy, sell or hold any securities, other investments or to adopt any investment strategy or strategies. This material is not intended to be relied upon as a forecast or research. All material is compiled from sources believed to be reliable, but accuracy cannot be guaranteed.

Clark Capital Management Group, Inc. reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. It should not be assumed that any of the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein.

Clark Capital Management Group, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Clark Capital’s advisory services can be found in its Form ADV which is available upon request.

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