Don’t Wait for Goldilocks
Yield curves have steepened and the opportunity cost of waiting for a “Goldilocks moment” to add duration has risen. Learn why diversifying across duration exposures, or “riding the curve” offers a compelling solution.
11/7/2023
8 min read
Topic
Fixed Income
Key takeaways
- Prepare for different outcomes. Taking a measured approach to allocating across the yield curve, or “riding the curve,” may help investors position for economic outcomes.
- Diversify duration exposures. Yield curves have steepened, bringing longer and shorter maturity yields more in line—offering an attractive entry point to diversify duration.
- Don’t wait. The opportunity cost for investors waiting for a “Goldilocks moment” to add duration has risen. Those who have waited have historically underperformed.
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