First Bermuda Securities Cites Concerns about Converging Economic, Financial, and Political Events
5 May, 2023
The U.S. Federal Reserve raised rates another 25 basis points this week despite increasing U.S. bank fragility. Inflation rates remain high although reduced from year ago levels. Political negotiations over limits to the U.S. government’s debt ceiling will reach a fever pitch in June. The geopolitical landscape among major nations shows no signs of improving.
A confluence of negative forces at work outweighing any prospect for a return to pre-pandemic levels of stability is weakening business, bank and consumer confidences. Banks are demonstrably slowing up on lending and savers and investors are increasingly moving to quality. Now’s a good time to build out a barbell approach to asset allocation: highly liquid near cash and cash investments on one end and alternative investments less susceptible to the vagaries of public markets including bonds and stocks on the other end.
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About First Bermuda Securities Ltd.
First Bermuda Securities Ltd. (“FBS”), an exempted Bermuda company, is a strategic advisory, compliance consulting and listing services firm based in Hamilton, Bermuda. Please contact us or visit our website at www.fbs.bm for additional information. We welcome proposals to engage for mutual benefit and promise a prompt and confidential response.
