2023-04-02 05:04:00 ET
Summary
- Over the past several weeks a remarkable shift in the market’s perception of growth, inflation and policy trajectories means investors should consider calling the market equivalent of a time-out to reassess portfolios.
- Importantly, as the Fed’s hiking cycle begins to come to an end, and we get closer to a potential pause, we’ve already started to see a significant drop in correlation between risky assets and rates.
- In this context, high quality fixed income can become the dominant fixture of a nicely yielding portfolio, and given that a recession is still a distinct possibility in the intermediate-term, upgrading that portfolio is an ideal way to call a market time-out.
For further details see:
5 Reasons To Call An Investment Time-Out