Tom it is a mugshot of in yield and it is very technically elegant. Dean curnutt to start is strong in the 6 00. He will talk about that. A massive correlation in currency markets. Jonathan yields of, dollar stronger . Tom dollar stronger but it is the way the dollar is stronger. Maybe the japanese are fighting to keep the yen off of 1. 50. The answer is markets are moving. Tom can this equity markets jonathan can this equity market lived with it . Equities could work in a hybrid environment. The s p 500 returned 15 every year from 1985 to 2005. When will rates were 2. 5 , can we live with these rates . Lisa this is a key question. You are saying an increasing number of analysts come out and capitulate, whether it is Morgan Stanley or goldman sachs. Yesterday, tech stocks outperformed. Where is it going to hurt . It is counterintuitive. Jonathan manufacturing is getting better, not worse. Payrolls on friday. Tom the numbers are getting better. Lisa on one hand you could say you are see
to the program ukrainian president vladimir zalinski says russia s invasion of ukraine is just the start of a wider plan to evade other places in europe. that s after arrest them at mina care . they top russian general outline plans to seize don bass and link it with crimea, which was annexed by russian forces in 2014. now the general says russia wants to open a land corridor all the way to a trans mystery or as a breakaway russian back part of moldova, a daily money, which is a whole booty grade. the invasion to ukraine can be considered just the beginning. they will want to invade other countries. of course, we will resist for as long as possible to break this ambition of the russian federation. but also of the nations that believe in the victory of life over death or they have to fight together with us. they have to help us dosage of all his a moscow with more of the next phase of russia s military operation. well, according to the acton commander of the countries central
Bear market than a grizzly bear market. We dont need to worry about the 10year getting too 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. 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 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 the spreads her tight in Corporate Bonds right now. We have been derisking. Within the markets, we
Bear market. We dont need to worry about the 10year getting too expensive. Our work suggests the sort of positive effect on the Financial Sector of the 10year moving higher, the potential negative effect of the evaluation compression. We have been talking about this great rotation. , they are nots clearly good. Last year they were just ok. Maybe you are starting to see rates move higher. People are moving to equities in the bond market. If the yield gets up to 285, perhaps it will get up to 3 , but the equity market is going to pick up and take notice. It will be to the benefit of the bond market. We think the economy will slow. Are tight ands Corporate Bonds right now. We have been derisking. We are introducing the highyield exposure. Jonathan joining me is robert tipp, chief investment strategist at pgim. Watson have marilyn coming to us from london, the head of the fundamental bond strategy at blackrock. Told this is significant postelection. How significant is it now that we have p
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