Anne Walsh, Chief Investment Officer of Guggenheim Partners Investment Management, joins Bloomberg TV to discuss the latest inflation data, the economic cycle, and portfolio positioning.
Key Takeaways:
- We expect to see inflation continue to come down, but it will not be in a straight line.
- The markets have been focused on rates but have not priced in a downturn in credit.
- We will see more pressure on margins as the recessionary cycle continues.
- Expect to see rolling recessions throughout the economy; commercial real estate is already in recession.
- Companies with cash will come through the cycle pretty well, but idiosyncratic credit risk is where we will see problems.
- It is a good time to be invested in higher quality credit, particularly AAA and AA structured credit tranches.
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