Accommodative interest rate policy remains a key market support.
Our full outlook will include detailed cross-asset-class views and our best ideas across public and private assets.
U.S. Treasury yields ended the week higher after the U.S. Federal Reserve hiked policy rates 75 basis points. Fixed income returns were dragged down by rising yields and widening spreads. Volatility ran high, especially for short-maturity rates and risk assets.
Combating inflation is tricky when the Fed is tightening. Increasing costs of essentials like food, transportation and shelter will continue to pressure global central banks to act boldly to restore price stability.
U.S. Treasury yields jumped last week, led by a dramatic spike in short-term rates, pulling total returns into negative territory.
Accommodative interest rate policy remains a key market support. While investors continue to focus on more hawkish Fed policy, overall rates are likely to remain relatively low even after several rate hikes.
In an uncertain macroeconomic environment, diversification and thoughtful risk allocation take on heightened importance.
U.S. Treasury yields fell again last week, supporting core fixed income returns. However credit spreads continued to widen on economic growth concerns.
Our best case (Goldilocks) scenario entails inflation moderating, GDP growth proving resilient and the Fed pausing on raising rates when the coffee is neither too hot nor too cold.
U.S. Treasury yields declined for the first time in six weeks.
Within equities, we prefer a defensive tilt toward dividend growers.