Week of May 22, 2023
The upside to the recent spike in inflation is the renewed sensitivity between interest rates and inflation. For decades, bonds paid rates of interest that were in excess of inflation, while in recent years, this has not been the case. Fixed income investments that are safe and stable, and also pay sufficient interest to keep an investor ahead of inflation, act as a good ballast in a portfolio that also includes common stocks and other asset classes. Our Signals remain unchanged.
Bob Bilkie, CFA