US political protests, inflation and rising bond yields
US political protests, inflation and rising bond yields
Dr Shane Oliver, Head of Investment Strategy and Chief Economist looks at the investment market implications of recent political protests/rioting in the US and the recent back up in bond yields.
The key points are as follows:
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US protests are only an issue for investment markets if they significantly impact economic activity and/or the sound working of the political process.
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Global and Australian recovery will boost bond yields and there is good reason to believe that (after yet another false ending) the now nearly 40-year super cycle decline in bond yields may be at or close to over.
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But the end of the super cycle bond bull market is likely to be gradual and so shares and real assets are likely to still see some benefit from a search for yield.
Download pdf copy – Oliver's Insights: US political protests, inflation and rising bond yields
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