The sharp rise in bond yields over recent weeks has rattled equity markets amid fears that fiscal stimulus and a post-pandemic spending splurge could stoke higher inflation.Five-year inflation expectations, as measured by the yield difference between nominal and inflation-protected US Treasury bonds, have rebounded sharply from their pandemic lows and are now at 2.5% - their … [Read more...] about Which equity sectors can combat higher inflation?
The U.S. and European Union (EU) announced a four‑month suspension of all tariffs related to the long‑running dispute about unfair government support for leading aerospace companies Airbus and Boeing, signalling President Joe Biden’s desire to realign trade relations. This pause came on the heels of a similar agreement between the U.S. and the UK. The timing of this early … [Read more...] about Cooling U.S.-Europe Trade Tensions Could Lead to Bigger Deal
Ever since the stock market bottomed in 2009 during the financial crisis, people have been coming up with reasons why the bull market was about to end. We heard every reason – Brexit, the end of Quantitative Easing, too much debt, COVID, etc. – and while we understood each may be a cause for consternation, we focused on valuations, which suggested the bull market would … [Read more...] about It’s Not a Bubble
Prices for all sorts of commodities are on the rise, potentially prompting investors to reappraise their view of commodity-related stocks. A number of different factors are coming together to support rising commodity prices. Such price rises could have a profound effect on the type of companies equity investors want to own. After years of being out of favour, suddenly … [Read more...] about Will rising commodity prices prompt a shift for equity investors?
The UK has barely begun to edge out of its third Covid-19 lockdown but economic activity in some sectors is already racing ahead. While consumer-facing services businesses still await a return to “normal”, the industrial manufacturing and construction parts of the economy are recovering strongly. We can see signs of this in the CIPS/Markit manufacturing purchasing managers’ … [Read more...] about How can investors access the UK’s industrial recovery?