BlackRock strategist: It's time to start moving out of cash and into fixed income

Federal Reserve rate cut expectations are diminishing, with the markets scaling back from their original forecasts of six rate reductions in 2024. BlackRock's Global Co-Head of Bond ETFs Steve Laipply shares his insights on the fixed income landscape amid the growing uncertainty surrounding the Fed's policy path.
Laipply acknowledges the "dramatic shift" in rate cut expectations, but believes there could be a single rate cut as soon as November. However, he notes that after that point, "it's unclear" whether any additional cuts beyond that in 2024.
Addressing the fixed-income sector, Laipply advises investors "to start moving out of cash and back into fixed income." He acknowledges that the recent Fed tightening cycle had driven investors away from the asset class, but he emphasizes that it will be "impossible for investors to time rate cuts," suggesting that it is now an opportune time to gradually reallocate to fixed income.
Laipply outlines three potential scenarios for investors to consider: For those who believe in a soft landing scenario, he recommends "moving back out into broad fixed income." For those who expect inflation to remain stubbornly high, he suggests focusing on treasury exposure and things like short-dated TIPS. For those who anticipate a hard landing, he advises longer duration fixed income assets.
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[Margaret.Hamilton]

I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Kimberly Smith.

[karsinds]

It's time to dump bonds and invest more aggressively on stocks

[FrankBenjamin-lb]

This seems like the worst period.
Even the market are now very unpredictable. Started investing recently when the market prices were a bit high, today I am more than 60% down!

[Ultrajamz]

They just don’t want people liquid to buy equities when they drop.

[alanhansbarger]

ECC Seems like a good place to be for income

[strummer]

Why bother with fixed income, which are mostly bonds paying in the 3% range that barely move higher or lower; when investors can still get 5%+ with 3 month treasuries or cd's?

[girliedog]

I'm taking everything out of foreign investments and putting the money into fixed income. The conventional wisdom for diversifying is no longer applicable, the last two years prove it.

[davidwestwater]

This is self serving black rock is in trouble

[invisiblesun]

Sure, if you talking rolling over short term T-bills.

[jeremiahjohnson]

It's simple now is the time to short the markers! SPX bottom will be between 4600- 4700! It's gonna be very volatile until inflation comes down. Blame the Fed, blame.blackrock jpm ect for pricing in rate cuts that haven't happened

[danclark]

Sounds like Larry Fink is recommending to make the same mistake he made in the 70’s during the decade of stagflation.