Be optimistic, but beware – big risks lie ahead

Jonathan Pain  |  The Pain Report  |  03 March 2021  |  0.50 CE

Global equity markets are celebrating the prospect of a rapid acceleration in economic activity and the remarkable ingenuity of humanity; the light at the end of the tunnel burns brighter by the day. That’s the good news. The bad news is that much stronger economic activity, driven by $22 trillion of monetary and fiscal stimulus, will deliver higher inflation and higher bond yields. It’s back to the drawing board - this herculean tug of war between stronger economic growth and higher bond yields will be the defining battleground of 2021 and will be accompanied by violent and...

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