Earl Davis is optimistic—and that’s rare for a bond investor. In this episode of In the Money with Amber Kanwar, the Head of Fixed Income at BMO Global Asset Management shares why he believes both the U.S. and Canadian economies are stronger than many think—and why fears of an imminent recession are overblown.
Davis explains why inflation isn’t heading back to 2% anytime soon, and instead may stabilize at a higher range of 4–5%. He also dives into the outlook for interest rates—why the Federal Reserve might still cut this year even if it shouldn’t, and why elevated rates could be the new reality for years to come.
He breaks down what’s really driving markets right now, from tariffs and deficits to Japanese bond yields and central bank policy. Most importantly, he explains how to position your portfolio in a world of sticky inflation, persistent government spending, and shifting global dynamics.
Plus, Davis shares his top bond picks—including two investment-grade corporate bonds (Fairfax and Enbridge) and a high-yield name in the defense sector with a 9% coupon.
If you’re trying to figure out how to invest in today’s bond market, make sense of the rate outlook, or understand where inflation is really headed—this is the episode for you.
