Bifogade filer
Carlsquare weekly market letter: Strike among bond investors can give upside for equity market
Prenumeration
As we wrote last week, the stock market has run out of steam and a pause and pullback would be good for the market. Today's inflation figures could be the catalyst as inflation has twice come in higher than expected which the Fed has dismissed as noise. But a third time in a row must be seen as a trend, right? With higher inflation, central banks will have to wait longer than expected to cut interest rates
From a very long-term perspective, we see from reports and conversations that bondholders are becoming increasingly cautious about owning bonds. Returns have been lackluster over the past couple of decades, and with ever-increasing levels of debt on sovereign balance sheets, the question is more and more about alternatives to investing in bonds. The next best alternatives are corporate bonds or equities. If this is a new trend in the making, it could improve multiples for decades and provide underlying strength to equity markets