Analyzing the Attraction of Safe Haven Fixed Income and the Potential Outlook for Currencies and Equity Markets

This chapter discusses the appeal of safe haven fixed income in a low inflation environment and its impact on currencies, with a focus on the US dollar. It explores the potential benefits of buying dips in the dollar and highlights the pro carry bias and low FX volatility that favor dollar-based strategies. The chapter also addresses the potential negative outlook for equity markets if a recession occurs.