Bloomberg Talks Bob Michele Talks Second Quarter Markets, Third Quarter Outlook
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Jul 1, 2025 Bob Michele, CIO of Fixed Income at JPMorgan Asset Management, provides keen insights into the current financial landscape. He discusses the S&P's impressive quarterly performance and the implications for third-quarter markets. The conversation covers the dynamics of the bond market, emphasizing investor sentiment around cash and currency shifts. Michele explores bond maturity strategies and highlights gold's role as a safe haven. The discussion also examines the Federal Reserve’s outlook, focusing on tariffs, inflation, and the evolving fiscal policy landscape.
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FOMO in Bond Market
- There's a strong feeling of FOMO among bond buyers entering the market.
- Many investors are shifting cash into bonds seeking yield as rates potentially come down later in the year.
Dollar Exposure and Fixed Income Flows
- U.S. fixed income hasn't seen capital outflows unlike equities where money moved to European markets.
- Investors are hedging part of their dollar exposure due to a 10% decline in the Bloomberg dollar index this year.
Treasury Confidence and Gold
- There's no concern about U.S. Treasury full faith and credit among investors.
- Gold is gaining support as an alternate safe haven and hedge against inflation.