Not exact matches
If my capital market expectations are for a good
bond market and a
weak stock market in the
next year (such as this year), I don't necessarily want to change any of the stocks or
bonds that I hold.
Australia's central bank signaled today it may resume cutting interest rates as soon as
next month if
weaker - than - forecast growth slows inflation, sending the local currency and
bond yields lower.
If the Dollar broke lower, its likely too that
bonds and duration would rally; defensives (staples, utes, reits) and growth (tech / biotech / discret) squeeze against crowded value unwinding (fins, energy, indus); yen and euro would squeeze mightily; gold squeezes while copper pukes in a favorite commodities «pair» unwind; HY could reverse
weaker vs IG (currently everybody long CCC vs BB on the high beta trade)... this would be the theoretical path to our
next pain - trade or even VaR shock.
Come are chemically cross linked (covalent
bonds again), and some are attracted to the
next strand over by the same
weaker intramolecular forces attracting other non-p0lymeric molecules but since polymer strands are long they provide more opportunity for the various forces to work.