Hartnett pointed out that against the backdrop of global central bank rate cuts, mainstream assets all imply risks: U.S. Treasuries are weighed down by massive debt, corporate bond spreads offer weak protection, U.S. equities are highly valued, and gold has already surged significantly. Despite numerous risks, markets are still witnessing a ‘buy everything’ frenzy, with capital flowing into technology stocks and gold. Meanwhile, he continues to favor a combination of bonds, international markets, and gold.
With the yield of money market funds expected to decline by at least 100 basis points in the coming quarters (as the Federal Reserve cuts rates), should I buy U.S. Treasury bonds when the U.S. government’s debt has reached $38 trillion? Or should I buy corporate bonds when credit spreads are at a 20-year low?
Or should I purchase stocks with a cyclically adjusted price-to-earnings (CAPE) ratio as high as 40 times? Or even gold,…
