Strategy Report
A New U-Star Is Born: Bad For Bonds, Good For Stocks
With the US unemployment rate and interest rate close to the ‘neutral’ u-star and r-star respectively, further Fed rate cuts risk pushing up inflation and long-term inflation expectations. This is bad for bonds but good for stocks. Plus, two new trades are: short TOPIX versus DAX; and short CAT versus SPX.
Interested in the Executive Summary of this report?
Get instant access to this Executive Summary from BCA Research.
BCA Research | Counterpoint
Global Investment Strategy, Counterpoint, Emerging Markets Strategy, China Investment Strategy, European Investment Strategy, US Investment Strategy.
Topics
Stay Connected with BCA
Get our latest events and research insights delivered to your inbox.