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History lessons

Article Abstract:

US bond and stock markets are likely to be closely and negatively correlated while there is concern that equities could crash. A major rally in the bond market is not likely unless selling of stocks occurs on a wider scale. Monetary policy after the stock price crash of 1987 was later analysed as too loose. Central banks ike the Federal Reserve do not wish to commit this error again. Bond yields had increased in 1987 before the stock rice fall, but this is not true for 1997.

United States, Prices and rates, Bonds, Bonds (Securities)

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Global strategy: growth revival

Article Abstract:

Bonds have performed strongly in most economies of the Group of 10 countries. This could be due to low economic growth, according to Michael Hughes from BZW, who sees low growth as more important than inflation or government borrowing. Hughes sees economic growth as due to revive in 1997. A drop in the cost of capital should push up corporate spending. Asian economies should also provide a stimulus to world economic growth in 1997.

Gross domestic product

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The lessons of the yield curve

Article Abstract:

Trends in the world economy are assessed through indications from bond markets.

Economic indicators

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