Death Becomes Her

- Decoupling – "The last quarter has seen 10Y yields around the world fall to all time lows or very close to all time lows, while equity indices have continued to rally."
- Who knows more? – "Equity investors seem to fear that the bond market is predicting a double dip that the equity market is not pricing in."
- A draw – "After these periods of equities and bonds tracking each other, equities outperform half the time. No monopoly on knowledge."
- Disbanding the cult of the equity – "The moves in the two asset classes have however seen dividend yields over bond yields back at pre 1950s levels."
- Growth matters – "This derating of equity suggests that future returns will be set by earnings growth rather than a further derating."
- Equity and credit – "The final yield crossover is credit and equity. Not yet at the index level. We screen for stocks; BASF, Roche, Unilever, Vodafone feature."

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