From Inflation Shocks to Recession Fears – American Century Investments – 10.20.22

Summary:

Now On Demand

As the Fed attempts to tame raging inflation with aggressive rate hikes, the economy remains in the crosshairs. Tighter financial conditions, in response to elevated inflation, likely will take a toll on consumer spending and corporate sentiment. Accordingly, we believe recession is the most likely economic outcome within the next few quarters.

Join Bob Gahagan, senior vice president and senior portfolio manager for American Century Investment’s core bond and inflation-protection strategies, and Balaji Venkataraman, client portfolio manager, as they discuss their market outlook.

What you can expect to learn:

• The potential risks to investors from the Fed’s hawkish policy, including financial market instability.
• The likelihood of inflation moderating but remaining uncomfortably high due to certain influences.
• The portfolio adjustments they’re making, including extending duration, with recession likely on the horizon.

Speakers:

Robert Gahagan is senior vice president and senior portfolio manager for American Century Investments, a premier investment manager headquartered in Kansas City, Missouri. Bob is based in the company’s Mountain View, California office.

Bob is a member of the firm’s Global Fixed Income Investment Committee, which sets investment outlook for the Fixed Income group, and leads the Rates and Currency team. He also serves as a senior portfolio manager on several fixed income strategies, including U.S. Core Fixed Income and U.S. Core Plus, as well as our U.S. inflation-linked and government-related fixed income strategies. Bob joined American Century in 1983.

Bob holds a bachelor’s degree in economics and a mater’s degree in business administration from the University of Missouri-Kansas City. He is a member of the Security Analysts of San Francisco.

Balaji Venkataraman is a client portfolio manager for American Century Investments, a premier investment manager headquartered in Kansas City, Missouri. He is based in the company’s New York office.

Balaji is responsible for representing portfolio management in communicating fixed income investment strategies and results to the firm’s clients. He joined American Century in 2022 from Wellington Management, where he was a fixed income investment specialist. In this role, he worked closely with fixed income investment teams as a product manager and to communicate their investment strategies externally with clients and prospects. Prior to joining Wellington Management, Balaji worked as a senior project manager at Casey, Quirk & Associates, where he advised investment managers globally on business growth and product management strategies. Previously, he worked at two fixed income hedge fund managers, NWI Management and Claren Road Asset Management, as a trading assistant and investor relations professional. He has worked in the investment industry since 2003.

Balaji holds a bachelor’s degree in commerce from the University of Virginia and a master’s degree in business administration from the Yale School of Management.