FTXN - Income Outlook: Q1 2021 - Resilient Portfolios For Reflation

• Inflation expectations are rising alongside economic acceleration, resulting in selloffs in longer dated bonds.
• While inflation may continue to rise in the near term, it appears unlikely to reach unusually elevated levels. Energy, materials, and industrials typically perform well in this type of reflationary environment.
• Income-oriented investors may be wise to reduce the duration and instead focus on credit-like instruments like preferreds, or gaining exposure to high yielding Energy investments.
• The Nasdaq 100 faces a mixed return outlook in the midst of a rotation from growth to value, so a covered call strategy is a potential alternative for income and tech exposure.

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