Signs of cooling U.S. inflation has one portfolio manager calling for investors to take on more risks in the equities and bond market.

Speaking with BNN Bloomberg’s Amber Kanwar on Monday, Jay Hatfield, chief executive officer, founder and portfolio manager of Infrastructure Capital Advisors, said he expects global growth will slow and inflation will drop further than the U.S. Federal Reserve expects.

He thinks investors could benefit from short-term bonds and large-cap dividend stocks if that scenario plays out.

“We think investors should go further out on the risk curve -- take some beta risk. We’ve been recommending some preferred stocks on the fixed income side, which are sort of junior credit, and then also large-cap dividend stocks,” he said.

Hatfield recommended Morgan Stanley (MS), Boston Properties Inc. (BXP) and NRG Energy Inc. (NRG) as his three hot picks at this moment in the market.

He, his family, his firm and his investment banking clients own shares of the stocks mentioned above.

Check out the full video at the top of the article to learn more.