Two-in-three odds on a September increase, core PCE at 3.3 per cent, and hiring already slowing. What a credibility hike does to a portfolio built for cuts.
Indian clients often ignore currency risk until it hits. A 3% rupee fall offsets an 8% USD drop — but the real issue is hedging costs and RBI constraints limiting domestic easing.
Review asset allocation now, not after a panic. Diversify into hedged or INR-based instruments if US exposure is overweight.
Don't sell blindly, but reassess goals — rupee depreciation and higher US yields change the math.
A portfolio built for cuts is a duration fund with a story. Two data prints from a hike just means the 10-year already did the meeting.
https://paretoinvestor.substack.com/p/how-bonds-quietly-rule-everything
Indian clients often ignore currency risk until it hits. A 3% rupee fall offsets an 8% USD drop — but the real issue is hedging costs and RBI constraints limiting domestic easing.
Review asset allocation now, not after a panic. Diversify into hedged or INR-based instruments if US exposure is overweight.
Don't sell blindly, but reassess goals — rupee depreciation and higher US yields change the math.