Investment IQ: 'Higher for longer' and dodging a recession brings risks

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Professional Adviser
clock • 2 min read
Investment IQ: 'Higher for longer' and dodging a recession brings risks

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Despite interest rate hikes from hawkish central banks, core inflation and labour markets pose major challenges for investors. Markets are coming to terms with what higher rates for longer means and just how much economic slack is necessary to bring inflation back to target.

Yet, while the US presents the possibility of a soft landing, differences are emerging among major developed economies. As such, strategies across cash, fixed income and US equities can help investors navigate a new era of turbulent markets.  

Professional Adviser's sister site, Investment IQ, provides wealth management professionals with access to the latest thought leadership content, all from a single source and free of charge.

Here are some of the most recent articles that we think you will enjoy:

What does higher for longer mean for markets?

Shamik Dhar, chief economist at BNY Mellon IM, says clearly the markets have adjusted to the idea that interest rates will stay higher for longer. This has weighed down the yield curve and pushed out bond yields as a result.  

Where do investors look in an era of a volatile 'new normal'?

High inflation drives opportunities and threats, but sensible diversification and exposure across sectors can shield investors.

Opportunity in fixed income gives investors reason to cheer

Rising market volatility, sparked by recessionary fears, climbing interest rates and inflation, is exposing some exciting areas of opportunity for active fixed income investors.

De-mystifying secured finance

Secured finance is a rare example of an asset class that can provide higher returns for lower risk. 

Is cash still king?

Cash has a role in multi-asset strategies and it is time to lock in higher yields for longer.

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