Jim Caron, Senior Portfolio Manager and Chief Strategist for the Global Fixed Income Team, shares his macro thematic views on key market drivers.
This Q&A comprises edited highlights of the above-named session with panelists Navindu Katugampola, Global Head of Sustainability for Morgan Stanley Investment Management (MSIM) and the Global Head of Sustainable Investing for MSIM Fixed Income and Liquidity teams, and John Streur, President & CEO of Calvert Research and Management.
Much of the discussion in financial markets in recent months has been about peaks: peaks in economic growth rates, Covid infection rates and (more recently) inflation rates.
The much-anticipated Jackson Hole Economic Symposium took place on 26 - 28 August, with pricing immediately prior to the event suggesting that markets were expecting a dovish statement from the Federal Reserve.
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.
