Part 7/9:
Once these indicators turn favorable, investors might consider increasing exposure to equities and longer-duration bonds.
Asset Allocation Recommendations
Bonds
A particularly attractive investment avenue right now is investment grade credit, especially in Asia. Yields in this category are at levels not seen since the early 2000s, offering compelling opportunities for income-seeking investors. If inflation continues to moderate and the FED pivots to a neutral stance, bond yields are expected to decline, benefiting those holding short-duration bonds, which could yield total returns of about 5-6%.