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A framework for navigating uncertainty: high-quality bonds return to traditional role

by Flavio Carpenzano and Peter Becker, Investment Directors.

  • Uncertainty over inflation and central bank policy is likely to remain high during 2023 with a wide range of possible outcomes for investment returns.
  • We have modelled a range of potential scenarios in terms of cyclical versus structural inflation and how the US Federal Reserve would react, plus potential equity and bond returns in these environments.
  • Our analysis points to one clear implication: the importance of investing in fixed income.

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