Market Insight for Cash Investors

Insight and Perspective on the economy and your cash portfolio

After continuous increases in interest rates by the Federal Reserve (“the Fed”) since March 2022, it seems to some that we may be reaching a point of inflection in which the Fed may hike rates once more before taking a pause. Watch our latest Quarterly Cash Update to learn more about the current state of the market, how credits have held up over the past year, and tips on how cash investors can take a strategic approach to their portfolios.

• Anthony Cucinotta, Head Trader, notes that that Federal Reserve Chairman Jerome Powell and The Federal Open Market Committee (FOMC) have been very transparent and consistent in communicating their goals of gaining control over pricing and getting inflation down to the 2% target level through the whole tightening cycle. In following this closely, he believes that “The Fed has set the stage that this may be a decent time to pause at this next upcoming meeting.”
• Kate Ryan, Senior Portfolio Manager, says as we approach the top, or close to the top, of the rate cycle, it is especially important to take a balanced approach to adding duration and locking in yield. She further explains that it may be a good time for cash investors to “…consider extending duration strategically and at a measured pace.”
• And Lance Pan, CFA, Director of Investment Research and Strategy, believes that despite trying economic circumstances such as the war in Ukraine and the March banking crisis high-grade credits have held up remarkably well.

At Capital Advisors Group, we have spent more than 32 years advising institutional cash investors on how to manage portfolios that are designed to help provide liquidity and targeted returns. Our latest Quarterly Cash Update is only the most recent example of the kind of depth and breadth of experience that we offer cash investors every day.