Tactical Investment Strategy — March 2024
March 19, 2024 — Tactical Investment Strategy provides an overview of key economic and policy themes and how Sage is tactically positioned in the current market environment.
Key Takeaways
- As we approach the end of the first quarter, equity market returns have become more concentrated, and valuations are even higher. A meaningful uptick for risk assets would require a perfect macro follow-through (no landing, aggressive cuts), which we don’t believe will happen.
- Rate cuts have been repriced for later in 2024, and “higher for longer” means bond investors can enjoy attractive yields for longer, with price gains down the road.
- We favor active fixed income in the current environment and are cautious on risk assets, especially given that fixed income is offering the most attractive yields in 15 years.
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