Market Compass October 2021
- The approaching end of the monetary stimulus and supply chains disruption are keeping markets nervous.
- Yet the success of vaccination and the still substantial policy support (especially in Europe) should prevent the worst.
- Bond yields are increasing and real yields will start adjusting to the incoming tapering. But the move will remain contained.
- We maintain a very prudent pro-risk bias, as equity returns - while decreasing - are still higher than bonds.