Tactical Investment Strategy — September 2023
September 18, 2023 — Tactical Investment Strategy provides an overview of key economic and policy themes and how Sage is tactically positioned in the current market environment.
- US data has remained firm over the last several weeks, supporting risk assets and keeping some upward pressure on yields. The idea that the Fed will be able to orchestrate a soft landing has become entrenched as the base call, but we remain defensive in our positioning.
- Risk assets do not appear correctly priced for the reality of an economic slowdown, an extended period of higher rates, or the risk that the landing is not as soft as expected.
- For cash and short maturity investors, we believe now is the time to consider lengthening average durations as a hedge against weaker growth and to fully participate in the upside over the medium term.
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