Wheels down, elevation up: Five themes for a new economic landing
We think the economy is experiencing a different kind of landing that defies easy categorization. It’s one in which inflation and monetary policy rates settle but stay structurally higher than they were pre-Covid. And while this landing may lack a label, it’s replete with opportunity for investors willing to adjust their portfolio itineraries. We offer these thematic travel tips as a starting point:
- Relative spreads and credit selection, not risk-free rates, will drive returns in debt markets.
- Real estate reality: it’s already bottomed.
- Energy demand charges ahead of capacity, creating opportunity for new infrastructure investments.
- Municipals are still the borrower of choice for investors in it for the duration.
- Small caps are suiting up for the big leagues.
Nuveen’s Global Investment Committee offers ways to navigate through these challenges and position for bright opportunities on the other side. Explore our latest investment insights and stay connected by subscribing below.
