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2023 Mid-Year Market Outlook

Financial Decoder

CHAPTER

How to Prepare for the Second Half of 2018 and Beyond

With the Fed in tightening mode, the outcome is likely to be slower growth and lower inflation. In that environment, bonds tend to do well. We also see reinvestment risk from sitting in cash or very short-term investments. And so we think it makes sense to lock in some of that income stream from intermediate and longer-term bonds even if it means getting a slightly lower yield.

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