Summary
- We have benefited from a prolonged multi-decade bull market in bonds and a sharp equity market rally post crisis.
- The slope of the treasury yield curve indicates no change to current market trends.
- Credit capacity is high for both commercial and household borrowing.
- We are bullish on the US economy and US equity markets.
Equity markets in the US have bounced back over the past couple of weeks and have shown strong momentum to the upside. We are now well into the fourth year of a rising equity market and we might now reasonably ask the obvious questions: When this might end and how should we allocate our capital?
Lets put the current interest rate and equity market into historical context.
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