JP Morgan Equity Strategy

We believe that any rise in bond yields will be a positive for equities, driving asset allocation shift and broadening of the market leadership. The common wisdom is that higher yields mean lower P/E multiples, but we disagree. It was lower earnings that would typically mean lower multiples, such as at the turn of ‘15. Equities tended to take any move up in yields in their stride during the past 10 year’s worth of asset reflation.

11 Dec 2017 - 07:27- Economic Commentary- Source: JPMorgan

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