Government Bonds: Credit Market and P Index

government bonds: They cut fixed income, saying government bonds and the credit market will underperform in the next 12 months, according to Bloomberg. The shift came during the S&P 500 Index best week in two years as more than 1 trillion was wiped off the value of bonds around the world. Strategists led by Jeremy Hale raised the firm recommendation on global equities to overweight from underweight, meaning investors should hold more stocks relative to their benchmarks. While acknowledging the risk that fixed income volatility spills into equities, Citigroup said Trump plans to ramp up fiscal spending will benefit corporate earnings and make bonds less attractive. function global function ad Code dimensions id 1 0 2 1 10 strategy targeting targeting Modifiers ; ; window ; Fiscal easing could be exactly what the U.S. and global economy needs right now, thus lifting real growth expectations but also inflation expectations, the strategists wrote in a note to clients. The capitalization of a global bond-market index slid by 450 billion Thursday, a fourth day of declines that pushed the week total above 1 trillion for only the second time in two decades, Bank of America Merrill Lynch data show. The prospect of stronger nominal growth should bode well for earnings, though we highlight how higher bond yields and rich US equity valuations as a starting point, constrain our optimism. (news.financializer.com). As reported in the news.