Shares and bonds seem like sending totally different messages — right here’s why that’s not the case
Since bottoming Christmas Eve, the benchmark S&P 500 Index is up over 30%, however the U.S. 10-year Treasury yield has fallen by 100 foundation factors.
Whereas at first look these markets is likely to be sending conflicting alerts, I see a constant message. Each bond and fairness markets have priced within the Federal Reserve efficiently avoiding a recession by retaining rates of interest decrease for even longer than beforehand anticipated.
There isn’t a query that world financial development has slowed and sure will proceed to sluggish. The deceleration is most concentrated in industrial and trade-exposed sectors, and within the economies…