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Post by davidsherman on Jan 22, 2024 1:41:22 GMT
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Post by Chahta on Jan 22, 2024 2:26:51 GMT
Thanks for the great 2023.
Low duration is a defensive strategy during rising rates. How does low duration work for the funds during declining rates?
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Post by mnfish on Jan 22, 2024 14:00:16 GMT
I thought this was worth re-posting -
“Since we believe investors cannot successfully “time” the market, we believe cash should be the residual component of the investment process. When there are no compelling opportunities at hand, we choose to wait. Sitting on your hands can be difficult when you see the portfolios of others increase in value, but we believe this is better than owning positions you don’t find attractive."
And -
"At year-end 2023, Fed Funds Futures were projecting seven 25 basis point reductions in the Fed Funds Rate, totaling 175 basis points, and bringing the rate down to approximately 3.75% by the end of 2024. This is in sharp contrast to the “dot plot” which indicated expectations for a total decline of 75 basis points." "Clearly one of these projections, and perhaps both, will be wrong with significant ramifications for the markets."
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Post by Mustang on Jan 22, 2024 14:43:59 GMT
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