The Hong Kong research house par excellence Gavekal is attributing the rise in yields as the key factor of the weakness of the S&P500 yesterday.
Rising rates are a sign that markets are normalizing after the sell-off of hedge funds last year and the subsequent fall out.
But if fixed income investors are wrong over the coming months and the economy is not recovering with inflation remaining absent, bonds could rally again.
For the moment the only inflation we note, are the prices of soccer players. These are not for Real, it seems. I am always curious which bank is giving here the line of credit.
Sphere: Related Content
Rising rates are a sign that markets are normalizing after the sell-off of hedge funds last year and the subsequent fall out.
But if fixed income investors are wrong over the coming months and the economy is not recovering with inflation remaining absent, bonds could rally again.
For the moment the only inflation we note, are the prices of soccer players. These are not for Real, it seems. I am always curious which bank is giving here the line of credit.
No comments:
Post a Comment