Entering September, the fixed income allocation strategy remains with a risk-on message and suggested no rebalancing from the month prior. The model remains overweight U.S. High-Yield Bonds, U.S. Investment Grade Corporate, Floating Rate Notes, and Emerging Market Bonds and underweight U.S. Long-Term Treasurys, U.S. Treasury Inflation-Protected Securities, and U.S. Mortgage-Backed Securities.

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

Full strategy commentary: NDRFIAS202309061

Other posts

Thoughts From the Divide:  Tremendous

BY JON WEBB
While there is likely some argument within the Administration as to whether supply chain shocks are both necessary and sufficient or simply necessary (mirrored by the Fed’s own divergence in views), it’s clear that Yellen and the White House are not too concerned about the Philips Curve, nor seem to put stock in John Cochrane’s “fiscal theory of the price level”. After all, Yellen is still quoted as saying that the US is on a responsible fiscal path, despite the deficit (which is, as Mosler notes, the public’s surplus). Or perhaps they think that with some proper cajoling, the greedflation genie can be put back in the bottle (at least temporarily) as CEO’s find a renewed sense of civic virtue and community? We wouldn’t hold our breath. Read more →

Thoughts From The Divide: Identifying Ducks

BY JON WEBB
While we may have missed getting out our Thoughts From The Divide year-in-review piece before the new year (mea maxima culpa), we did manage to spend some time going through our “best of” and “greatest hits” in anticipation of the changing of the calendar. As usual, there were some repeated themes and tropes, but at the highest level, what struck us was that last year seemed very much governed by the timeless question from the underrated philosopher of science, Whitney Houston: “How will I know?” (closely followed by her observation that “crack is whack”) Read more →

S&P 500 Nears Overbought, Fed Heads & Inflation on Deck

BY TEMATICA
Equity futures point to a down market open later this morning,… Read more →
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