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PGIM Fixed Income

2023 Top 500 ranking: 29

The Fed and the “Buy-the-Dip” Mentality

Buy-the-dip

Since the global financial crisis, investors have become accustomed to the “Fed put” during periods of market stress. Severe downdrafts in risky assets and their associated risks to growth were met by a Fed willing to ease policy in an effort to meet the maximum-employment side of its dual mandate.

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