Emerging Money Daily Audio Call October 28 - We close October trading with one of the worst months for sovereign bond yield investors in memory.
In relative terms for sure as Germany, for example, saw a 1200% move from low to high yield in the 10yr Bund. This move is extraordinary even if that is not quite how bond investors look at things. You can argue the higher rate environment puts more pressure on equities or at least will make the assessment of valuations more intense.
As we get through earnings we are more concerned about pressure on Consumer Discretionary(retail) stocks which may look inexpensive but seem challenged on technicals and secular trends in the retail sector.
Macro, if anything, was a surprise this week as we saw better data from Europe and the US manufacturing and GDP. We discuss the implications for investment.
Have a great weekend.
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