Yellen Optimistic on Soft Landing, But Conning CIO Foresees Mild Recession in 2023
• Treasury Secretary Yellen believes the economy is on track for a soft landing, but Conning CIO Beaulieu disagrees and says a soft landing would be "miraculous"
• Beaulieu expects consumer pullback in coming months, leading to a mild recession in late Q1/early Q2 2023
• Markets have priced in a Fed pivot too soon based on economic data; Beaulieu expects Fed to remain hawkish
• Investors should buy some bonds but be patient on duration, favor less cyclical names
• Structured credit like mortgages can be an attractive income stream, not the same risks as 2008