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Behind the Markets Podcast: Alejandro Lopez-Lira

Behind the Markets Podcast

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The Fed's Tightening of Real Rates

I have revised my estimate of what I think real rates will settle down to. This is good news for equities because it means probability of recession is definitely down. The impairment of the correlation and hedging ability of long bonds is probably more serious than I had anticipated. So those are the economic reasons why real rates, my forecast for real rates has gone up.

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