At a Time of Economic Uncertainty Real Assets a More Favorable Investment

The nation’s economic situation remains unclear as government spending remains high at 44% of gross domestic product, and likely to remain elevated because 2024 is a critical election year. It is similarly anticipated that monetary policy will become more accommodative, with the Federal Reserve expected to feel intense pressure to cut interest rates resulting in the U.S. dollar taking a hit after seeing gains from the Fed’s tight monetary policy. Taking to these two trends together, Michael Hartness, chief investment strategist at Bank of America Merrill Lynch Global Research indicated that investors should focus more on investments in precious metals, real estate, and infrastructure, which “tend to perform best when inflation picks up” versus financial assets.