Chuckrox

Sorry typo on economic recession effects, corrected as below

Economic Expansion
1) Cash instrument: outperform
2) ST / risk free bond: underperform
3) LT risky bond: outperperform (because spread fall)

Economic Recession
4) Cash instrument: underperform
5) ST / risk free bond: outperform
6) LT risky bond: underperform (because spread rise)

Unexpected Inflation
7) Cash instrument: outperform
8) ST / risk free bond: underperform
9) LT risky bond: underperform

Interest rate rise
9) Cash instrument: outperform
10) ST / risk free bond: underperform
11) LT risky bond: underperform

So. if the economy is in expansion, with high inflation and high interest rate
12) Cash instrument: outperform
13) ST / risk free bond: underperform
14) LT risky bond: Inconclusive