Risk Is Inflation Not Falling Back to 2%, Says Fidelity’s Timmer
- Inflation is coming down but may not hit Fed’s 2% mark: Timmer
- Then inflation accelerates at next expansion off higher base
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For decades, investors have been advised to hold a portfolio of 60% equities and 40% bonds to generate the best risk-adjusted returns. While that turned out to be a disaster in 2022 as stocks and bonds plunged in tandem, Fidelity’s top macro strategist says this year will be different, and fixed income should once again serve as protection if the bear market in equities continues amid an economic slowdown.
One big risk? That inflation fails to fully normalize as many hope.