3min chapter

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The Asset Allocation Draft for 2023

Center For Investment Excellence

CHAPTER

Fixed Income - Will There Be a Recession?

I think the markets remained far too optimistic over the degree of hiking that was going to be necessary. We have seen bond yields spike and significant negative returns across most fixed income asset classes. And now I would say we are at kind of a plateau where the market is more or less fairly assessing the Fed's policy path. You may want to layer on a little bit of credit spread risk probably in a diversified way.

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