Fund managers pick bonds over stocks on recession risk
Harry Suhartono and Tassia Sipahutar
The threat of recession in the world’s largest economy is making debt securities a safer bet, while the sharemarket is yet to price in those risks.
That’s the view of some fund managers and strategists from JPMorgan to UBS and Morgan Stanley, who now prefer fixed income to equities. The argument is that bonds, particularly higher-rated ones, will be able to better weather an economic slowdown than stocks if the US Federal Reserve fails to navigate a soft landing.
Bloomberg
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