Inflation/Deflation

The Eurozone’s inflation will continue to slow over the coming months. While this trend will help Bund prices, will it boost the appeal of European equities?

We are approaching another phase transition from boom to bust. Stocks should rally into year-end, but investors should look to reduce equity exposure early next year while increasing bond exposure.

Our reaction to today’s FOMC meeting and the Treasury’s Quarterly Refunding Announcement.

High interest rates will eventually cause growth to slow. Signs of stress are already starting to show. Stay cautiously positioned.