Market Musings 181123: Stick or Twist on Stocks?

Market Musings 181123: Stick or Twist on Stocks?

Summary:

Global stocks rebounding - approaching recent peaksUK, Emerging Market stocks continue to lagSell at the highs or wait for more? Follow leading sectors

Video this week:

Our investment strategy for November 2023

In this podcast Edmund Shing, Global Chief Investment Officer of BNP Paribas Wealth Management unveils his investment strategy for November 2023.

1.The one rate to rule them all: the US 10-year Treasury bond yield. The global economy is most sensitive to long-term interest rates, because so much depends on them. The US 10-year treasury yield is the key interest rate in the largest economy, in the world’s reserve currency. The single critical indicator to watch.

2.The US 10-year yield is now 1.5% higher than in May 2023: then, the US 10-year yield sat under 3.5%. In just five months, this yield has risen to close to 5%. This sharp increase in bond yields has prompted large inflows to US bond ETFs and funds as investors seek to lock in the highest US bond yields observed since 2007.

3.Higher long-term rates do the Fed’s job for them: house mortgage and corporate loan...