There is more upside for both equity and bond markets – UBS
Source Fxstreet
US equities sit close to their all-time highs and 10-year US Treasuries trade with yields almost 100 basis points below their October peaks. Can equity and bond markets keep rising in 2024? Economists at UBS analyze market’s outlook.
Base case scenario is for a soft landing
Our base case scenario is for a soft landing. Lower interest rates, positive (albeit slowing) economic growth and growing corporate earnings should support modest further upside for equities.
We also think long-term bond yields have room to fall further, given long-term real rates are still higher than the Fed’s estimate of the real neutral rate, in our view. We favor bonds on a risk-adjusted basis.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
Ethereum (ETH) climbed above $2,900 on Thursday, mimicking the rally seen in Bitcoin.
Bitcoin (BTC) traded above 4% on Thursday after soaring to a new all-time high above $116,800. The rally, which appears to be leverage-driven, triggered over a $1 billion short-squeeze across the entire crypto market.
The Japanese Yen (JPY) drifts lower against a broadly stronger US Dollar (USD) during the Asian session on Friday.
Dogecoin started a fresh increase above the $0.180 zone against the US Dollar.
Gold price (XAU/USD) is gaining positive traction for the third consecutive day on Friday and approaching the top end of its weekly range amid rising trade tensions.
