Bloomberg’s John Authers highlights ASR’s latest quarterly asset allocation survey

There has been a dramatic rethink about the outlook for the Fed funds rate.

The surprise is how little this big Fed rethink has impacted asset allocation views.

Investors anticipate: 

• the Fed will do enough without breaking the economy…even though a strong majority believe that 10-year yields will be higher at the end of 2022 than at the beginning.

• emerging market bonds to beat U.S. high-yield bonds this year … although the ranks of the confident are plainly getting thinner

• The risks for 2022 may be found in asset allocators’ biggest assumptions on inflation and where conviction is weak - Japan, intra-regional calls, and FX views.

To read the full column see All This Market Optimism Faces a Big Dose of Negativity (Bloomberg subscription may be required)

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