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.
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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