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May 27, 2022

Emily Roland, co-chief investment strategist at John Hancock Investment Management, says the bond market is pricing in 11 quarter-point rate hikes from the Federal Reserve this year, and with three in the books through May, she believes the Fed will step back from its plan and that rates will not move up as much as anticipated. As a result, she is expecting a bond rally that will help fixed-income play its traditional role as a volatility damper in portfolios.  Roland says the economy looks to her like it can avoid recession but the stock market is acting like it has arrived, creating opportunities for a bounce-back in equities later this year. Also on the show, Nicholas Marshi of talks about how business-development companies have been stronger than the general market thus far in 2022, and how their prospects look bright in a rising-rate environment that has been building without a lot of potential liquidity and credit-quality issues, and Jonathan Smucker of Marietta Investment Partners mixes top-down and bottoms-up approaches talking stocks in the Market Call.