Instead, Dmytryszyn said he’s more interested in bonds now than he was at the beginning of the year. “You’re at least earning more income on the portfolio to cushion against the higher yields.”

Looking at the big picture, Dow said he expects interest rates to rise pretty dramatically in the near future, even if the Fed risks causing a recession.

“They’ll do it because it took them 40 years to get here, to establish themselves as the world’s best inflation-fighting central bank, with credibility second only to the former German Bundesbank,” he said. “During the ’80s, the Fed tipped the economy into recession several times in order to anchor inflation expectations near 2%.”

The late cycle is the worst time to be an asset allocator or investor, he acknowledged.

“This doesn’t sound exciting, but having a diversified portfolio is the best protection an investor can have right now” he said. “And know that in the short run, we’re going to see volatility. Volatility is the price we pay for building wealth."

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