If the Fed continues to sit on its hands, markets will keep selling the long end and the dollar while buying gold, digital assets, and non-dollar currencies.
If the Fed continues to sit on its hands, markets will keep selling the long end and the dollar while buying gold, digital assets, and non-dollar currencies.
Favor short-duration bonds and real visible assets.
Persistent supply shocks and inflation will raise the term premium for longer-duration bonds, steepening the yield curve; investors should favor shorter-duration instruments, well-secured high-quality credit, non-dollar assets, and real visible assets.