Dr Shane Oliver, Head of Investment Strategy and Chief Economist looks at the investment market implications of recent political protests/rioting in the US and the recent back up in bond yields.
The key points are as follows:
- US protests are only an issue for investment markets if they significantly impact economic activity and/or the sound working of the political process.
- 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 super cycle 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.
Download pdf copy: Oliver’s Insights: US political protests, inflation and rising bond yields
If you would like to discuss any of the issues raised by Dr Oliver, please call on +61 07 5610 1915.