Balance the Bonds and Stocks for Success

The Federal Reserve's interest rate hikes, coupled with decreasing consumer confidence and rising yields, suggest the bond market might be mispriced, indicating a potential imbalance in investor sentiment. A strategy involving shorting two-year bonds while going long on equities, specifically S&P futures, could be profitable as the anticipated changes in yields might occur gradually rather than through significant inflation spikes. Expected economic growth of around 3% coupled with moderate inflation suggests a solid nominal growth rate, supporting a balanced investment approach.