Is now the time to reduce the cash allocation in your portfolio? History shows that the best entry points for bonds are often before the Fed starts cutting rates.

Reproduced with permission from AllianzGI

Experienced active managers can capitalize on opportunities that fall outside their benchmarks and can manage unwanted concentrations. This has historically resulted in relatively high success rates in generating alpha.

An unexpected shock in the banking sector has stress-tested the economy and policymakers. Both initially passed. But the impact on lending and credit conditions remains unclear and increases the likelihood of a mistake by the Fed going forward.