Mide, the CEO of Mlinks Investment, anticipates a tough economic environment ahead in the US. However, he sees potential benefits for fixed income investments amidst these challenges.

In order to succeed in the current climate, I think retail investors and amateur money managers will require more than mere luck. They will need additional tools and strategies to thrive in the near future.

Erica Shiffer

4/3/20241 min read

In order to succeed in the current climate, I believe retail investors and amateur money managers will require more than mere luck. They will need additional tools and strategies to thrive in the near future. I anticipate that the medium-term economic environment will remain tough but more favorable for fixed-income markets in the U.S. due to easing inflation, as outlined in a Reuters-examined letter. I expect economic growth to be restrained, remaining below potential in the upcoming quarters, with the U.S. central bank persisting in its efforts to combat inflation. Despite this, I believe that consumers will likely see real income growth. However, I must express concerns about the U.S. fiscal situation, which shouldn't be ignored. With a deficit of 6.4% despite unemployment rates at about 3.75%. Additionally, there was about a 13% increase in the U.S. federal budget deficit in February compared to the previous year, due to rising interest costs and tax refunds as contributing factors. Over the first five months of the fiscal year, the deficit increased by about 15% to $828 billion due to escalating interest expenses on the national debt.

In conclusion, I believe the way to go for managers is to deploy flagship strategies across all assets rather than multi-strategy.