“WE BELIEVE WE'RE CLOSE TO THE END —  if not at the end —  of the Federal Reserve’s latest rate hike cycle,” notes Matthew Diczok, head of Fixed Income Strategy for the Chief Investment Office (CIO). That doesn’t mean rates will be coming down any time soon. With interest rates expected to remain higher for longer, this may be a good time for you to revisit your holdings of both cash and bonds to ensure that they align with your short- and longer-term goals, he adds.

In this conversation with Chief Investment Officer Chris Hyzy, Diczok discusses strategies investors could consider now, along with potential risks of being too overweight in cash. They also discuss the outlook for different segments of the bond market and offer insights on the three benefits bonds could provide in a portfolio.  For more on the topic, read the CIO’s Fixed Income Spotlight for October 2023, and the column “How I Learned to Stop Worrying and Love the Bonds” from the November 6 issue of the Capital Market Outlook.