Testing the waters: From waiting it out to wading in
Historic rate hikes from the U.S. Federal Reserve and other central banks have helped bring inflation down considerably from the 2022 peaks. Even so, inflation in most areas of the world still exceeds the long-term 2% target set by policymakers — potentially signaling that inflation has become structurally higher. The era of ultra-low interest rates is also clearly behind us.
Investors daunted by this uncertain environment needn’t — and in our view, shouldn’t — stay on the sidelines indefinitely. Our Global Investment Committee suggests a judicious approach to putting cash back to work, focusing on these key tenets:
- Dip a toe in first.
- Explore international waters.
- Find an oasis in real estate.