In many ways, the speed of the global economic recovery is as breathtaking as the downturn. It’s a pace that has already led to an array of divergences.
Perhaps most notably, the bond market recovery persists in the face of surging growth and inflation. In the Bond Market Outlook section, Robert Tipp, CFA, Chief Investment Strategist and Head of Global Bonds, suggests that rather than an anomaly, this timing is typical of the markets’ forward-looking nature.
One of the global economic divergences pertains to monetary policy, as Nathan Sheets, PhD, Chief Economist and Head of Global Macroeconomic Research, explains. Several EM central banks continue to tighten policy, while the developed market central banks largely stand pat.
The tangible effects of this speed and divergence is apparent in our Sector Outlooks as our portfolio managers indicate how conditions are creating opportunities—and accompanying risks—throughout the global markets.