The willingness of major central banks in developed markets to tighten policy further and/or faster to best inflation has resulted in substantial weakness in equities over the past week or so, including a renewed slump today following some short-lived respite after the end of yesterday’s FOMC meeting. And while government bonds have rallied a bit since then, the bigger picture is that they have also suffered recently. A joint sell-off in equities and bonds has been a feature of much of 2022, resulting in a poor performance from a synthetic “60:40” equity/bond portfolio in the US, for example.
Markets Drop-In (22nd June, 10:00 ET/15:00 BST): Join our Markets team for this special briefing on the outlook for equities, bonds and FX and a discussion about revisions to our forecasts. Register now
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services