WHEN THE GOING GETS 'BORING'
Leslie J. Nanberg, fixed-income chief at Massachusetts Financial Services Co., runs the $20 billion bond portfolio. ''It's hard for me as a bond person to admit it,'' he says, ''but this year is one time the bond market is boring.''
ON THE ECONOMY
''It's in pretty good shape. Momentum is good with no real signs of overheating. But we're now getting wage hikes higher than inflation.''
ON INTEREST RATES
''I look for another [1/4% move] by the Fed in July. The market seems pretty comfortable with what the Fed is doing. That keeps rates from going up dramatically, but I don't think they can come down much.''
ON ASSET ALLOCATION
''We're 20% in cash, 30% bonds, the rest equities''--with an emphasis on foreign stocks. Nanberg expects the stock market to correct again in July after another rate hike. Then, he says, ''we'll be 40% bonds, 60% stocks.''
ON INVESTMENT PICKS
''A diversified junk portfolio is an attractive place to be.'' Why? Balance sheets are improving. The emerging-market sector is still doing well. Peru and Venezuela are likely upgrades. A favorite: Russian short-term treasury bills yielding about 11%.
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