QUARTERLY
INVESTMENT OUTLOOK
Intelligence for Your Portfolios
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Checkpoints is a comprehensive monthly chartbook highlighting major top-of-mind themes that could shape financial markets in the near term. In addition to the broader macroeconomic discussion, Checkpoints delivers detailed views on major asset classes, including global equities, fixed income and real assets.
A sharp repricing has pushed 10-year U.S. Treasury yields to around 5.30% following the Federal Reserve's (Fed) 25 basis point (bp) hike in September, with real yields doing the heavy lifting.
For investors’ next marginal fixed income allocation, we believe high yield bonds could be worth considering against private credit in the current environment.
Sticky inflation and resilient growth have revived monetary tightening, increasing the risk of higher-for-longer rates and near-term volatility. We continue to believe economic resilience and strong corporate profits should continue to provide a favorable backdrop for stocks, and would use periods of market weakness to add selectively to equities. Additionally, owning real assets can help hedge against inflation.
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