- Analytics
- News and Tools
- Market News
- The rally in both bonds and stocks looks unsustainable – Nordea
The rally in both bonds and stocks looks unsustainable – Nordea
In November, stocks and bonds have rallied and the US Dollar has weakened. Economists at Nordea expect markets to move back to reality.
The current rally in bonds and stocks is unlikely to continue
The rally in both bonds and stocks looks unsustainable. The next environment is likely to be one of too much economic growth and too high inflation, which will put upward pressure on interest rates and weigh on stock prices. The environment we have right now of higher stock and bond prices and lower oil prices increases the chances of this happening.
The problem is that storm clouds are gathering. The rise in unemployment constitutes a significant risk and increases the likelihood of too little growth and too low inflation, which means the odds of bonds outperforming stocks significantly are rising. Both environments seem to be good for the US Dollar which is suffering in the current soft landing environment. The Dollar is also likely to benefit from economic divergence between the US and the Euro area, which suggests the odds of too little growth and too low inflation in the Euro area are larger than in the US.
© 2000-2025. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
