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ASR in Bloomberg Opinion: ‘Not even thinking about thinking about rate cuts’

3rd NOV. 2023

In Bloomberg’s recent Opinion’s piece, Isabelle Lee discusses how rising yields have been seen as the driver of equities, with both moving in lockstep. Ian Harnett of Absolute Strategy Research in London…

… draws attention to the way the unemployment rate is inversely correlated with equities’ performance relative to bonds. When it’s falling (much of the time), stocks beat bonds. When it rises, bonds win, often quite violently. Rising joblessness in the non-farm payroll data due Friday would be good news for bonds — but not necessarily for stocks. So, if you think the jobs market really will ease, you should be buying bonds.

  • To read this Bloomberg article in full, please see: HERE (subscription may be required) 

  • ASR clients can read our latest Equity Strategy Insight: HERE

  • If you are interested in a free trial of our award-winning research, please see: HERE

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