Ken Shinoda of DoubleLine and Mona Mahajan of Edward Jones provide insightful analysis on the Federal Open Market Committee’s rate decision and Federal Reserve Chair Jerome H. Powell’s remarks during a recent appearance on Bloomberg TV’s “The Close.” With the Fed contemplating rate adjustments while keeping a close eye on inflation trends, Shinoda and Mahajan foresee a prudent approach guided by economic indicators and consumer behavior.
Powell’s comments on inflation and potential rate cuts elicited a positive response from equity markets, while the bond market saw interest in steepening trades amid the Fed’s cautious stance on rate changes. Furthermore, the current recessionary pricing in commercial real estate presents an opportunity for investors, with cash investments offering attractive yields compared to long-term U.S. Treasuries.
Forecasts by the Fed indicate a gradual return of cash reserves into equities, prompting Shinoda and Mahajan to advocate for balanced-portfolio strategies. They emphasize the importance of including equities, bonds and potentially commercial real estate to diversify investment opportunities and adapt to the evolving financial landscape.
Mr. Shinoda joined DoubleLine at inception in 2009. He is Chairman of the Structured Products Committee and oversees the non-Agency RMBS team specializing in investing in non-Agency mortgage-backed securities, residential whole loans and other mortgage-related opportunities. Mr. Shinoda is co-Portfolio Manager on the Total Return, Opportunistic Income, Income, Opportunistic MBS and Strategic MBS strategies. He is also lead Portfolio Manager overseeing the Mortgage Opportunities private funds. Mr. Shinoda is also a permanent member of the Fixed Income Asset Allocation Committee, as well as, participating in the Global Asset Allocation Committee. In addition, he hosts DoubleLine’s “Channel 11 News” (Twitter @DLineChannel11, dline11@doubleline.com), a webcast series that provides market insights and commentary with peers and industry experts. Prior to DoubleLine, Mr. Shinoda was Vice President at TCW where he worked in portfolio management and trading. He holds a B.S. in Business Administration from the University of Southern California and is a CFA® charterholder.
