Anthony Muh, regional head of investments at Citigroup Asset Management, believes economic growth will cool off at a sustainable rate rather than overheat and crash, setting the stage for relatively better performance in the equities markets.
He emphasizes that despite expectations of US short-term interest rates rising another 75bp to 100bp this year, his balanced funds are not underweight bonds, although his position has been defensive, holding short-duration securities. But the prospect of rising bond yields will also hurt equities. So it's not the time to leave the bond markets, he says, particularly because cash returns are so low.
Rather, Citi is maintaining neutral positions, with the...
