The vigilantes aren’t back – yet. But the United States’ fiscal position is worse and the spectre of inflation has returned, and this time they would have a much stronger case, according to Ruffer’s Steve Russell.
Technology stock valuations are rising, bucking the prevailing market conditions and further inverting the traditional bond/equities relationship. “This shouldn’t be happening”, says Ruffer’s Steve Russell.
The aggressive sell off in US bonds has prompted many to speculate that interest rates have adjusted upwards on a structural basis. But Ninety One investment strategist Russell Silbertson takes a different view.
It is striking how little little yield premium equities are offering over the official interest rate at them moment, says Ruffer’s Steve Russel. Investors may be tempted, but he warns that a cautious road may suit for the period ahead.
