Opinion
Bonds v stocks: which market is calling it right?
There is an unresolved tension between bond and equity markets about when a recession will occur and how severe it will be. Can their forecasts co-exist?
Jonathan ShapiroSenior reporterThe biggest debate in financial markets right now is actually between the markets themselves.
As Future Fund chief executive Raphael Arndt explained last week at The Australian Financial Review Alpha Live Summit, the bond market thinks there’s going to be a recession, and interest rates will fall. But equity markets “don’t seem concerned about anything, which is a concern”.
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