A tale of two markets | August 2021
In this episode, we’ll be looking at whether equity and bond markets are taking a different view on the prospects for global growth. We lean to the more optimistic view from equity investors.
Bond and equity markets are telling a different story about the global growth outlook: equity markets have rallied significantly since the start of the year, while treasury yields have trended lower. Both markets can’t be right1.
We are sticking closer to the upbeat view taken by the equity market, believing that bond yields currently suggest excessive pessimism. That said, we are alert to a number of risks, including inflation and slowing global growth.
Source: 1 Refinitiv Datastream/Smith & Williamson, ONS, data as at 28 July 2021
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This episode was recorded on 03/08/2021
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The Pulse from Smith & Williamson
Investment Show: A tale of two markets
Broadcast on Smith & Williamson at 09:00, 3rd of August 2021
Available online from 10:00 on the same day.