Financial Planning Focus - Bondpocalypse Now?
While equity markets have rallied since the surprise Trump victory, a rout in bond markets has been equally significant. The horror, according to bond market prognosticators, is an abrupt change in the consensus view that we are in a “lower for longer” yield environment. A Trump administration, including a Republican controlled Senate and House, are more likely to pass tax reforms and fiscal stimulus. Coupled with near full employment, these measures are likely to spur inflation as well as economic growth, though the magnitude of each will be dependent on the details of the policy changes. The
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