May
01

Data Drama

During the brief economic downturn late last year, bond yields fell along with equities because there was fear the economy was slowing, corporate profits were weakening, and inflation was expected to fade. Now, the stock market is at a record high while bond yields remain very low. This divergence means inflation is expected to be weak, keeping rates low and pushing up equities, because economic growth is expected to be just mediocre.

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