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.
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.