PA ANALYSIS: Is predictable monetary policy making asset allocation an easy game?

As news of healthy numbers in the United States today hardens expectation that the Federal Reserve will raise rates next month or very soon after, investors may be thinking everything is just as heavily advertised.

PA ANALYSIS: Is predictable monetary policy making asset allocation an easy game?

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Alongside this, there is the relative unattractiveness of bonds, which after the so called ‘thirty year bull run’ have been largely unfavoured for some time and a fractional interest rate rise will do little to change this.

Asset allocators and economists have released a steady stream of commentary to this effect recently, and it seems likely to continue.

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