Big Picture: Asset markets have corrected recently and it has been very difficult for investors to find a hiding place apart from cash, as equities and bonds have sold off, including the safest bonds.We think that this represents a temporary correction in investor sentiment. The process of adjusting expectations to slower Fed purchases is well underway. In addition, the Fed has no reason to let the process overshoot significantly. Risky assets should be supported by improving economic prospects, which will also gradually push up bond yields.
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