Why reallocating into fixed income could be considered "wise" at the moment

Reported 6 months ago

Michael Goosay, Principal Asset Management's Chief Investment Officer of Global Fixed Income, suggests that inflation data and the economy's robustness have brought into question the Fed's monetary policy stance, potentially leading to a rate cut in September 2024. Goosay advises investors to reallocate from equities into fixed income due to attractive risk-reward opportunities, with fixed-income markets offering yields of 5-6%. The article discusses trends in fixed-income flows and the potential impact of future rate cuts on market volatility, emphasizing the importance of being prepared for potential shifts in the economic cycle.

Source: YAHOO

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