Expensive. Weve seen 3 in the past few years. Our work suggests the sort of positive effect on the Financial Sector of the 10year moving higher right now overwhelms the potential negative effect of the valuation compression as rates rise. We have been talking about this rate rotation for years. People are going to go out of bonds into equities. Bond returns, we are only three weeks into the year but they are not very good. Maybe you start to see as rates move higher and returned sir to move higher and returned to start to deepen in the bond market, people moving equities and supporting the equity market. At some point, when the bond yields get up to 285, perhaps it will get to 3 in the 10year, i dont think so but perhaps, the equity market is going to pick up and take notice. I think it will be to the benefit of the bond market. With higher rates, we think the economy will slow a bit, but ultimately the spreads her tight the spreads are tight in Corporate Bonds right now. We have been
The 10years getting too expensive until 3. 5 , quite frankly. Weve seen 3 in the past few years. Our work suggests the sort of positive effect on the Financial Sector of the 10year moving higher right now overwhelms the potential negative effect of the valuation compression as rates rise. We have been talking about this rate rotation for years. People are going to go out of bonds into equities. It is pretty high right now. Bond returns, we are only three weeks into the year but they are not very good. Maybe you start to see as rates move higher and and returned to start to deepen in the bond market, people moving equities and supporting the equity market. At some point, when the bond yields get up to 2. 85 , perhaps it will get to 3 in the 10year, i dont think so but perhaps, the equity market is going to pick up and take notice. I think it will be to the benefit of the bond market. With these higher rates, we think the economy will slow a bit, but ultimately the spreads are tight in C
Expensive until closer to 3. 5 , frankly. Weve seen 3 in the past few years. Our work suggests the sort of positive effect on the Financial Sector of the 10year moving higher right now overwhelms the potential negative effect of the valuation compression as rates rise. We have been talking about this rate rotation for years. People are going to go out of bonds into equities. Cinnamon is pretty high in the equity market right now. Bond returns, we are only three weeks into the year but they are not very good. Maybe you start to see as rates move higher and and returned to start to deepen in the bond market, people moving equities and supporting the equity market. At some point, when the bond yields get up to 2. 85 , perhaps it will get to 3 in the 10year, i dont think so but perhaps, the equity market is going to pick up and take notice. I think it will be to the benefit of the bond market. With higher rates, we think the economy will slow a bit, but ultimately the spreads are tight in
Gina we dont need to worry about the 10years getting too expensive until 3. 5 , quite frankly. Weve seen 3 in the past few years. Our work suggests the sort of positive effect on the Financial Sector of the 10year moving higher right now overwhelms the potential negative effect of the valuation compression as rates rise. Jonathan m we have been talking about this rate rotation for years. People are going to go out of bonds into equities. It is pretty high right now. Bond returns, we are only three weeks into the year but they are not very good. Maybe you start to see as rates move higher and and returned to start to deepen in the bond market, people moving equities and supporting the equity market. David at some point, when the bond yields get up to 2. 85 , perhaps it will get to 3 in the 10year, i dont think so but perhaps, the equity market is going to pick up and take notice. I think it will be to the benefit of the bond market. Mark with these higher rates, we think the economy wil
I dont think without list of names, even witnesses yellen, i dont think the president can make it bad choice. The Political Considerations outweigh the current economic situation. The new administration often just wanted some people on board. The interesting part is this discussion is coming at a time when there is the socalled mystery about the low level of inflation. The interpretation is quite important. I think they refute jay powell is someone to be more continuous in the policy we have been experiencing. Complexll have a very accomplished economist as the head of the Federal Reserve for the foreseeable future. Jonathan joining me is my , head ofbob michele the Global Fixed Income Commodities Group at jpmorgan asset management, and Marilyn Watson from blackrock. Lets begin with where the odds are for the race for fed chair. The number one spot seemingly is jay powell. The number two spot, if you look the front runners is reportedly jay powell and john taylor. The spread between th