Asset Allocation Viewpoints & Positioning: Q1 2022 Intra-Quarter Update
Global central banks are deliberately slowing aggregate demand; no major central bank is more intent on that than the Federal Reserve
We have observed over time that equity bear markets resulting from central bank induced monetary tightening usually follow three sequential phases:
Source: MAST, May 2022
Thus far, the YTD pull back across equities can be entirely confined to Phase 1, or rising interest rates. We believe Phase 2 and Phase 3 will follow over the next six to twelve months. We therefore retain our defensive posture.
The views expressed herein are those of the Harbor Multi Asset Solutions Team at the time the comments were made. They may not be reflective of their current opinions, are subject to change without prior notice, and should not be considered investment advice. These views are not necessarily those of the Harbor Investment Team and should not be construed as such. The information provided is for informational purposes only.
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