Entering October, the fixed income allocation strategy rebalanced and favored mixed leadership. The model is overweight U.S. Floating Rate Notes, International Investment Grade, and U.S. Treasury Inflation-Protected Securities. U.S. High Yield and Emerging Market bonds were downgraded to marketweight. 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: NDRFIAS202310041

Other posts

Thoughts From The Divide: Is it safe?

BY JON WEBB
We were very sad to see that Warren Mosler has decided to take an extended break from posting on X. Mr Mosler has helped inform our views about the overall policy stance. Most of all, Mosler was right: tight monetary policy did not stop the economy, and those who bet on that lost. Fiscal was certainly a factor, although reasonable people might debate how much of a factor. But with Fed officials mostly of like mind in thinking it is time to cut rates (see quote above), the question we find ourselves asking is whether it is finally safe to bet against Mosler. Or, to put it another way, “Is the U.S. consumer tapped out?”. Read more →

Thoughts From The Divide: Strength in Numbers

BY JON WEBB
The rest of the world isn’t quite experiencing the same economic momentum as the US (the latest S&P Flash PMI noted that “input costs rose at the fastest pace in six months, while firms increased their selling prices to the largest extent since April last year”), making cuts a more palatable choice, but we feel for the Fed, who wants to be the odd man out? Read more →

Multiple Data Points to Go Before a Santa Claus Rally

BY TEMATICA
The Fed's next meeting, updated economic projections, Retail Sales and more Read more →
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