Investors who are worried that the stock market rally has gone "too far, too fast" and seek a "safe haven" in the bond market may want to think twice. The reason why is that the credit market appears highly precarious. First, with rates at historic lows, even a modest rise in rates will rapidly reduce … Continue reading A bond market update
Author: Terry Grennon
Asset Allocation Strategist
There should be no concern about inflation
LT inflation expectations should not be sensitive to a sudden move in either oil prices or equity prices as timely monetary policy adjustments from policymakers are supposed to offset those shocks. The main short-term leading indicator of inflation is labor unit costs, which is used as an indicator of inflationary pressure on producers. Interestingly, after … Continue reading There should be no concern about inflation
