Poole: the Fed will pause, not pivot | Ausbiz
‘The Fed will pause, not pivot’, said Isaac Poole from Oreana Financial Services, who joined us to discuss Fed expectations and China’s economy. The Fed has a clear message, to get rates to a restrictive level and keep them there as long as possible without crushing the economy. Isaac claims this is a positive for investors particularly those who have invested in government bonds and treasuries as yields are expected to have peaked out. The yield curve is deeply inverted and historically it has always preceded a recession. Isaac continues with what an appropriately balanced portfolio looks like in these conditions being to at minimum, get to mutual settings on government bond yields and holdings, being overweight on government bonds and that it is not the time to be selling equity holdings. With China crippled from their recession, a soft-reopen is underway to help boost the economy. Isaac said there is a possibility of a harder re-opening at the start of 2023, the property sector remains vital to the Chinese economy however, there is a desire to shift away from this. Listen here for all the details and more with Isaac.
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