Greg Dean's blog
Dear fellow Fundholders,
Wow! What a change in sentiment we have seen over the last 12 months around stocks. At this time last year, we were inverting the colours of our Bloomberg terminals for companies on our watch list, so that when stocks were down they showed in GREEN! Then, the popular debate was whether the U.S. and rest of world were entering a recession and whether China would devalue its currency.
They say a picture is worth a thousand words. Well, anyone trying to make sense of this post-election rotation out of secular growth and fixed income and into cyclical and financial stocks can look no further than the 10-year bond in the U.S. While an argument can definitely be made that this has been a big move in a short period of time, I think it’s also worth appreciating the other side which is we are still at levels below 2014!