Tactical Investment Strategy — July 2023
July 10, 2023
Key Takeaways
- Equities stole the show during the first half with robust gains built on resilient data that propelled the soft-landing narrative and expectations that the Fed was almost done tightening.
- We see a much more challenged back half as stimulus money runs dry and economies feel the increasing impact of restrictive monetary policy and tightening credit conditions.
- We continue to carry an overweight in fixed income vs. equities. The risk/reward for fixed income is superior to equities given full valuations and economic risks for equities and much higher yield carry for fixed income.
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