Invesco Canada blog

Insights, commentary and investing expertise

I’m not concerned about long-term inflation. Here’s why.


Global Market Strategist, North America
March 5, 2021

Subject | Industry views | Invesco | Macro views

Market drawdowns are never fun.  But for all the hand wringing over the current market downturn and the pain in the long-duration trade, let’s not forget that in many ways, this is playing out as we had hoped.  It was only one year ago when the first case of the SARS-CoV-2 appeared in my home state of New Jersey.  If you had told me then that 12 months later the U.S. economy would produce 379,000 jobs in the prior month,1 the 10-year U.S. Treasury yield would be flirting with 1.60%,2 and the U.S. 10-year inflation breakeven would be over 2.2%,3 then I would have slept much better that night. 

Continued

Comments Off on I’m not concerned about long-term inflation. Here’s why.

Will higher bond yields kill the bull market in stocks?


Sr. Investment Strategist Invesco Thought Leadership
March 2, 2021

Subject | Industry views | Invesco | Macro views

The answer to that question depends on the reason why interest rates are rising. If it’s because real economic growth is picking up, that should be good for stocks through the earnings channel. If it’s because inflation is getting out of control, that should be bad for stocks through the valuation channel.

Continued

Comments Off on Will higher bond yields kill the bull market in stocks?