Coffee with Evergreen #14

In this episode of Coffee with Evergreen, partners, Jeff Otis, and, Jeff Dicks, CFA, discuss our investment committee's outlook on interest rates and explain some of the complexities that investors may be scratching their heads on when it comes to the relationships between interest rates, inflation, and various other economic realities. Evergreen has long been known as an "income manager". Not because our portfolios neglect to focus on the equity side, but because active management of both the stock and bond sides is uncommon even amongst professional managers. For 25 minutes, co-CIO Jeff Dicks, describes to listeners the ways in which his team leaves no stone unturned when optimizing portfolios for cash flow.

1. Since March, inflation rates have moved up from 1.5% YoY to over 5% and at the same time, the 10-year has gone from 1.8% to 1.35%. What is happening to cause this?
2. Given rates are so low, how are we positioning our income portfolios today?
3. What are the biggest risks facing financial markets and do we anticipate a major correction near-term?