Portfolio Manager, Fixed Income
Although the Fed has softened its stance and the labour market remains tight, the outlook for a strong US rebound in growth remains muted. Coupled with European elections nearing and anticipated slower growth in China, the outlook is neutral and portfolio decisions continue to prepare for what may come next.
While the global economy delivers on growth, the signs are there from the US regarding the pressure of inflation as the Fed raises rates, coupled with indications of wage pickup across the world. The RBA remains in a holding pattern on rates, and won’t move until the unemployment rate drops further.
Quantitative easing has altered the face of markets by underpinning strong returns and lowering volatility, leaving most assets rich and with higher forward-looking risk.
Kellie Wood discusses the fixed interest market reaction to Brexit including another major bond yield falling into negative territory. Learn why in this fragile environment the portfolio manager is positioned with the longest duration the Fund has had since the Strategy’s inception.