Looking at the performance of U.S. Treasuries (and other developed government bond markets) in both nominal and real terms, one could be forgiven if one believed the economy was sinking, the Fed was easing, and/or inflation was falling.
Growing $10,000 at an annualised rate of 8% a year would become $14,693 in five years, $21,589 in 10 years, and be worth more than four times as much in 20 years at $46,610.
Jim Caron, Senior Portfolio Manager and Chief Strategist for the Global Fixed Income Team, shares his macro thematic views on key market drivers.
Markets were spooked mid-month as the Delta variant of COVID-19 surged across many parts of the globe. This made for a choppy period, but markets regained composure before month-end.
June turned out to be nothing like May. Indeed, it was a remarkable month with yields continuing to fall, credit spreads tightening and equities rallying despite ostensibly bearish data/news.
There are two keys to managing a multi-asset portfolio successfully. The Global Balanced Risk Control team discusses.
This month the Fed surprised by moving its dot plot for 2023 to include two rate hikes - a hawkish divergence from the one rate hike that markets were expecting would be signalled.
