Thursday 10 December 2020
News, Investment Talks, Market News
We estimate that the ten-year yield may reach 1.00%-1.25% by the end of 2021, with foreign demand reigning in potentially higher longer-term rates. We think equities will continue to be more attractive than fixed income because earnings yields through November exceeded investment-grade corporate yields, and the gap between dividend yields and the ten-year Treasury yield was the largest since the 1950s. While a divided government will limit the most aggressive policies of Democrats, including the Green New Deal, the power of Biden’s executive branch to increase regulation should bring meaningful pressure on companies to improve their ESG profiles. We expect continued momentum for ESG investing.
The likelihood of a divided US government removes a major potential headwind to the US economy, that is, higher taxes. With multiple Covid-19 vaccines showing promise, the US economy may surprise on the upside in 2021.
How hot is the inflation pot?
Higher inflation will have huge investment implications and any portfolio construction exercise should be approached with this regime shift in mind.
AF US Pioneer Fund receives Prestigious Climetrics Award
Amundi receives two Climetrics Fund Awards, recognizing our efforts on environmental ambition, action, and transparency
Biden and Democrats Take Control
Biden and Democrats Take Control Despite Trump Protesters