On Monday, March 22nd, stocks finished higher as the 10-year U.S. Treasury yield was slightly down compared to its recent highs.
Bond yields recently have been rising on investor concern that a stronger economic rebound will lead to higher inflation. However, the Federal Reserve said that, although as pandemic recedes and the economy recovers prices will be pushed up, there was no sign yet that this will deliver unwanted inflation.
In fact, the Fed has said it believes an increase in inflation in 2021 will be temporary given COVID-19’s disruption to the labor market.
Bulwark CIO Zach Abraham watches trends closely, and implements investment strategies to help take advantage of all market conditions. His comments were published by MSN last week:
“The recent rise in rates should continue to compress multiples on high flyers and stocks with rich valuations,” said Zach Abraham, principal and chief investment officer of Bulwark Capital Management. “A rise in inflation should also result in a much more friendly environment for value stocks and dividend payers.
“We’ve had a historic run in growth. But the time for value has come. This rotation has a lot of kegs and should run for a while,” Abraham added.
Read the original story on MSN here:
The article was also picked up by The Street: