Look for Relative Opportunities
BlackRock Investment Institute strategist, Ann-Katrin Petersen, says, under the new regime of increased market volatility, investors shouldn’t be trying to pick between equities or bonds, but instead need to be looking for relative opportunities within those markets. Peterson went on to say she likes emerging market equities and the short end of the treasury curve.
Yield Curve To Get More Inverted
Greg Peters, Co-Chief Investment Officer of PGIM Fixed Income, is projecting that, barring a deep recession, the inverted yield curve between 2 and 10 year treasuries is only going to get more inverted.
Both Markets Can’t Be Right
PIMCO Multi-Asset Strategies Portfolio Manager, Erin Browne, is saying something’s gotta give when it comes to rates futures and equity valuations. Rates futures are currently pricing in Fed rate cuts starting in the second half of 2023, indicating investors, including Browne, are expecting a recession, and yet equity valuations are still priced for growth. Ultimately, Browne said both markets...
Opportunities in International Equities
Rick Rieder, BlackRock’s CIO of Global Fixed Income, sees the most interesting investment opportunities, geographically, as US debt, especially at the front end of the curve, and internationally equities, namely those in Asia, Europe, and Emerging Markets.
Worst of Banking Crisis is Over
Crossmark Global Investments CIO, Bob Doll, believes that the worst of the banking crisis may be over, but there are still issues related to the Federal Reserve's raising of interest rates that may lead to consequences such as a slowing economy. However, he also finds the recent increase in both financials and energy stocks to be encouraging.
Interest Rates Are Too Low
Co-Head of US rates strategy at JPMorgan, Jay Barry told Bloomberg that while the market is pricing in rate cuts before the end of 2023, their in-house projection is that rates are too low compared to their modal view.