According to some of the world’s biggest bond managers from Fidelity International to Allianz Global Investors, the United States is heading for a “nasty” recession. They’re sticking to their forecasts for a downturn that is “inevitable” and advise hedging any bets on risk assets.
“Something akin to a credit crunch is what I’m most concerned about,” said Steve Ellis, global fixed-income chief investment officer at Fidelity International, which manages $663 billion of assets. Central banks’ continued tightening shows they’re “fighting last year’s battle,” he said according to a report by Fortune. The damage from 10 straight interest rate increases has been done and the collapse of three U.S. lenders in March was just a taste of the bigger crisis to come as central banks stay hawkish until something else breaks. Just last week, Canada and Australia delivered surprise hikes, putting some pressure on the Federal Reserve to follow at an […]
Excerpt Sourced From: conservativeplaybook.com
