Entering November, the fixed income allocation strategy continued to favor mixed leadership. The model is overweight U.S. Floating Rate Notes, International Investment Grade, and U.S. Treasury Inflation-Protected Securities. The model is underweight U.S. Investment Grade Corporate, U.S. Long-Term Treasurys, and U.S. Mortgage-Backed Securities.

Click the link below to read more about the strategy’s positioning.

Full strategy commentary: NDRFIAS202311031

Other posts

Thoughts From The Divide: Adjustments

BY JON WEBB
Last week’s excitement in bond markets came courtesy of Governor Waller offering a mechanical rationale for rate cuts. Simply, “If inflation goes down, you would lower the policy rate.” This came, of course, in the context of warnings about financial conditions and other caveats, but as is so often the case, what the markets heard was “so you’re telling me there’s a chance?”. That doesn’t mean that we disagree with the market’s read of where the Fed’s head is. Fed Governors don’t make too many boo-boos with their messaging, and when they do, it’s often an error of timing rather than content. The market has now priced cuts down to “around 4% by the end of 2024” and while that seems perhaps overdoing the enthusiasm a tad, we suspect that the market has gotten the gist about right.  Read more →

Tariff Turmoil, OPEC+ Output Hike & Fed Meeting Ahead

BY TEMATICA
The market expects no move from the Fed but what about the White House? Read more →

April Inflation & Retail Sales Data Ahead, But Why Earnings Will Matter More

BY TEMATICA
Plus some fresh words from Fed Chair Powell on Wednesday Read more →
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