Higher Rates, Peak Margins, and How We're Allocating

Higher Rates, Peak Margins, and How We're Allocating

Peak profit margins and hawkish environment increase the downside risk of the liquidity trade, which still has a lot more to go.

Diego Tremiterra
Diego Tremiterra

IN THIS PUBLICATION

  • The risk of being exposed to the liquidity trade is now significantly higher.
  • Markets are correcting, but there’s potentially a ton more to go if the Fed’s serious about hiking rates.
  • We're avoiding bonds, being strategic about cash, and favoring real assets.