Financial Markets
Global Bond Strategy
Third Quarter 2020
Interest Rates: A Growth Story
Real growth drives real interest rates. The Pandemic may limit growth as consumer behavior changes. US interest rates may stay low for more than a decade.
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Growth vs. Politics
Equity risk is rising as politics is trumping a slowing global economy.
Elevating risk.
Politics and time
are conspiring to force the Fed to lower interest rates.
Tight and Loose.
The US economy is buoyed by the consumer while manufacturing bares the burden of the trade wars.