Fynsa
It seems that the trend is recovering and the market is ready to inject the liquidity that was being held back in anticipation of better investment opportunities.
High mortgage rates are cooling demand.
In the current environment, ETFs with fixed maturities emerge as a compelling option for those seeking predictable and stable returns over time.
A more balanced overall exposure and active management is recommended to address the concentration risk of passive indexes.
Although the Fed is nearing the end of its rate hike cycle, they are still likely to raise the fed funds rate further, given the strength of the labor market, but keeping the pace moderate.
While equities have a relative advantage over bonds in a more inflationary environment, as inflationary pressures begin to moderate, an intermediate step in risk taking should be via investment grade fixed income.
You may say I am a dreamer: economic policies work and eventually we will return to equilibrium. It's not free, though, like nothing else in life.
The market is beginning to doubt that central banks globally will remain aggressive in the fight against inflation as risks to financial stability increase.
