A US cyclical recovery drives interest rates upwards

By Boh Burima
Updated April 9 2017 - 6:19pm, first published 5:57pm

The most important event for equity investors in 2016 was the reversal in bond yields (interest rates) off highly abnormal lows in mid-2016, accelerated by Trump’s surprise US election victory and promises of improved growth (expected to lift inflation). Until then, investors had enjoyed several years of outperformance in high yield and defensive stocks benefiting from their relative appeal versus falling risk free rates and robust earnings. 

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