Podcast

Fixed Income Focus: Economy, Elections, and Eggs in One Basket?

George Bory, Chief Investment Strategist for Fixed Income, interviews Noah Wise, Senior Portfolio Manager for the Plus Fixed Income team. The pair discuss how the Fed may react to stickier inflation, a potential market impact of the impending U.S. election, and benefits of diversifying your fixed income portfolio. 

Purple petals.

3/13/2024


Topic

Fixed Income

Key takeaways

  • Economic activity looks healthy, but with that good news comes sticky inflation.
  • The Fed is maintaining flexibility while signaling the hiking cycle is done. Positive growth data gives cover to wait on cutting rates from concerns around inflation.
  • Credit spreads remain well behaved, in part reflecting positive technicals from the amount of yield buyers and investors under-allocated to fixed income in the market.
  • Elections are incredibly hard to predict. Even more of a challenge is predicting the market's reaction to those elections.
  • Prioritize flexibility for various economic and political outcomes in 2024. Don’t have all of your eggs in one basket; diversify in fixed income and across the yield curve.

Fixed Income Focus: Economy, Elections, and Eggs in One Basket?