Markets are priced for perfection in a very imperfect world. As stocks hit new highs, are the bulls or bears correct? Politics are likely to be the major influence on where we go next, but lurking around the next corner might just be inflation.
You could not make this up; an unimaginably complex WW3 Techno-thriller unfolding as markets stumble and global supply chains hover on the edge of anarchy. On the other hand, maybe that’s just the way it was planned.
Everyone thinks current market volatility is due to the bond market acting like a bully. When it lashes out the market sells off in fright. Volatility is elevated and everyone is flustered about bursting bubbles
There is an old market rule – don’t fight the Fed. Jay Powell has been crystal clear: rates are staying lower for longer. But the ongoing sell-off in Treasuries, and rising global bond yields, paints an interesting story of a market unconvinced rates can be held down
Interesting markets as tech wobbles on the perceived inflation threat while bond yields continue to edge upwards. In our regular virtual-office Monday huddle we debated whether the inflation threat is real, immediate or likely to be delayed
