Investors looking for alternate investments to stocks during the period of high inflation and recession worries were turning to 10-year and 30-year treasuries.
A money manager has liquidated treasury holdings, driven by a fresh wave of optimism about economic growth.
What Happened: Investors and market experts see the potential for rate cuts by the Fed in 2024 following a phase of increased rates.
George Efstathopoulos, who is a Fidelity International money manager, sold the majority of U.S. Treasuries in December from funds he oversees at the financial company, Bloomberg reports.
The sale comes as the money manager forecasts growth in the U.S. economy and diminishing concerns over a potential recession.
"We don't expect sort of a recession anymore," Efstathopoulos said. "The probability of no landing is still small, but it's been increasing."
The money manager said that talks of no landing increasing could lead to lowered expectations for Fed cuts in 2024.
Efstathopoulos manages around $3 billion of income and growth strategies for the large financial institution, according to the report.
Related Link: Treasury Glut: Can Investor Demand For US Bonds Keep Pace With Supply Increases?
What's Next: After selling off the treasuries in December, Efstathopoulos has turned his attention to other assets that he said can outperform in good economic times.
Among the investments that are attractive to the money manager are U.S. mid-cap stocks and Greek stocks. The money manager also likes Japanese banks, according to the report.
Read Next: Japan’s Nikkei Bucks Recession Trend, Hits Historic 39K Points, Echoing 1989 Levels
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