Sara Devereux, the global head of fixed income at Vanguard's Investment Management Group, predicts a recession in 2024 and discusses how Vanguard is preparing its funds by increasing exposure to safe fixed income assets. Devereux's prediction aligns with the views of other investment strategists, such as Ben Bennett, who also anticipate a recession in the near future. Both Devereux and Bennett point to factors such as low unemployment, a tight labor market, and inflationary pressures as indicators of a potential economic downturn. Devereux highlights the importance of diversification and recommends increasing exposure to safe fixed income assets, such as bonds, in order to mitigate risk during a recession. She emphasizes the need for a cautious approach and suggests that investors consider short-dated bonds and longer-dated interest rates. Devereux also mentions the potential for high-yield and emerging markets to perform well in a soft landing scenario. However, she advises that cash is currently the safest option. Vanguard's approach to preparing its funds for a recession reflects their commitment to managing risk and protecting investor portfolios. [470b2353]
Ariel Bezalel, co-manager of the £2.5bn Jupiter Strategic Bond fund, is also taking a defensive stance with his portfolio in anticipation of a potential recession. Bezalel spoke at the Morningstar Investment Conference and stated that the portfolio is the 'most cautious' it has been for a long time. He is adjusting his portfolio in response to a looming recession in the United States and the fragile global economy. Bezalel is prioritizing income generation over aggressive capital growth, reflecting his cautious approach. [cb8bd7e6]
Jeffrey Palma, head of multi-asset solutions at Cohen & Steers, shares his investment predictions for the next decade. He expects higher and more normal yields, increased economic volatility, risks of inflationary surprises, greater geopolitical uncertainty, and a resetting of asset prices. Palma believes that fixed income now provides a higher-return alternative to other asset classes, while equity returns are expected to be lower. He sees a favorable environment for real assets, with attractive valuations and the expectation of stickier inflation. Palma also discusses the outlook for fixed income, equity markets, and real assets. [118b85fb]
Investors should take note of the insights provided by Devereux, Bennett, Bezalel, and Palma, as their expertise in the field of investment management and their analysis of recession indicators and capital market assumptions can help inform investment decisions. It is important for investors to carefully consider their risk tolerance and investment goals when making decisions about asset allocation and portfolio diversification. By staying informed and seeking guidance from trusted financial professionals, investors can navigate the potential challenges and opportunities presented by a recession and the changing capital market landscape. [06e44871]
According to a recent article by Citywire, Ariel Bezalel, co-manager of the £2.5bn Jupiter Strategic Bond fund, is adjusting his portfolio in anticipation of a potential recession in the US and the fragile global economy. Bezalel is prioritizing income generation over aggressive capital growth and described the portfolio as the 'most cautious' it has been for a long time. His defensive stance reflects his cautious approach to managing the fund amidst US recession fears. [06fd6d3d]