Investor Account Access
Investor access to Shareowner accounts and Closed End Funds accounts.
The age of the 'Great Coincidence' in the policy mix is over. Budget deficit reductions are near, and will be accompanied by diminished household savings and greater pressure on corporate profits in light of wage negotiations. The widespread belief that fiscal spending is effectively unlimited is going to be severely tested. On the monetary side, we're witnessing the end of ultra-cheap money. Central banks have had to hike rates and drain liquidity in this time of looming stagflation, but will maintain a benign-neglect tilt and allow inflation to run to preserve growth.
The real federal funds rate must be positive—one indicator of restrictive financial conditions--in order to control inflation. The market is anticipating a positive real federal funds rate in late 2023, suggesting that now is an appropriate time to add duration to fixed income portfolios, and that a 60%/40% equity/bond allocation is appropriate for prudent investors.
On 15 June, the Fed hiked the Fed funds rate by 75 basis points (bp), to 1.50-1.75%, the first 75bp rate rise since November 1994. Chair Jerome Powell confirmed that recent readings regarding consumer inflation and inflation expectations caused committee members to realize a hike of that size was necessary.
Before investing, consider the product's investment objectives, risks, charges and expenses. Contact your financial professional or Amundi US for a prospectus or summary prospectus containing this information. Read it carefully. To obtain a free prospectus or summary prospectus and for information on any Pioneer fund, please download it from our literature section.
Securities offered through Amundi Distributor US, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer mutual funds, Member SIPC.