The models are broken
The market is trying to get back to the pre-Covid and pre-war times, but that model is broken. A new dawn is here and the financial world needs to adapt.
Steen Jakobsen,
Chief Investment Officer
Singapore Sales Trader
Various monetary policies issued by the central banks have inflated asset prices but have had little impact on consumer goods and services, perhaps even on tax. We think it makes sense to keep some ammunition in reserve to take advantage of opportunities. If the market is nearing the end of the rate hike cycle, yields are going to start looking more attractive given the expected leveling off in yield increases. With higher interest rates, fixed income is likely to produce more positive returns.
Let’s take a quick look at the various central banks’ upcoming events and recent actions:
Most traded bonds on Saxo – Offline: