GGRW - Why Stocks Can Survive Bond Market Bumps

2024-03-19 02:50:00 ET

Summary

• Typically, a back-up in rates has led to a sell-off in stocks. We believe the current environment is different for three reasons: the degree of the move in rates, current economic cycle, and strength of mega-cap technology.
• In this environment, we would advocate for maintaining an overweight to equities, with a barbell structure for sector exposure.
• Within fixed income, we suggest a modest underweight to duration notably via long-term bonds with exposure focused on spread-related products as a complement to risk assets.

In this article, Russ Koesterich discusses the reason behind the recent resiliency of stocks, despite rising rates. ...

For further details see: