Strategy Report
A New U-Star Is Born: Bad For Bonds, Good For Stocks
With the US unemployment rate and interest rate close to the ‘neutral’ u-star and r-star respectively, further Fed rate cuts risk pushing up inflation and long-term inflation expectations. This is bad for bonds but good for stocks. Plus, two new trades are: short TOPIX versus DAX; and short CAT versus SPX.
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BCA Research | Counterpoint
BCA’s flagship global macro and investment strategy platform, helping investors anticipate regime shifts, connect signals across regions and asset classes, and navigate the world’s most difficult macro questions.
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