The trilemma strategy

The world economy is conflicted by variables that will slow growth and headline inflation.  But not enough to make bonds a buy because central banks will go on tightening and many of the negatives will increase costs. There are equities that should do well: corporations with cash flow surpluses, as well as some high-yielding structured-equity products. We are also long energy stocks. We would buy selected emerging markets, particularly in Latin America, that are both high-yielding; might take a political turn towards reform; and benefit from higher commodity prices.

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