Markets and the economy are gradually adjusting to higher costs of capital (higher yields/rates) and less abundant capital. The process will take a long time to work its way through, causing both up and down oscillations in the stock and bond markets. This will also likely lead to a recession that may not be as soft as the consensus believes. This does have us still leaning with a moderately defense stance in our multi-asset portfolios, but still with enough exposure to benefit from a potential rally into year-end. If this does transpire, we would anticipate getting a bit more defensive on strength.

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