Matt Toms, CFA, CIO, Fixed Income
The Federal Reserve will begin reducing its holdings of Treasury and agency mortgage securities in October. Reduction will start at $10 billion per month, gradually rising to a maximum of $30 billion. The Fed is keeping the door open for a December interest rate hike.
Barbara Reinhard, CFA, Head of Asset Allocation
The confluence of upbeat economic conditions, a weak U.S. dollar, low interest rates and solid earnings growth favors emerging market equities and U.S. large cap stocks. We are generally underweight fixed income but still find U.S. bank loans attractive.