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:
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US protests are only an issue for investment markets if they significantly impact economic activity and/or the sound working of the political process.
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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.
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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
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