20 Jan US political protests, inflation and rising bond yields
Key Points:
- US protests are only an issue for investment markets if they significantly impact economic activity.
- 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
- But the end of the 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.
