Bonds and Stocks Can Move Higher on Strong Growth, Says Milligan

The video discusses the current market trends, focusing on bond yields and their potential rise due to fiscal policies and President Trump's budget. It explores the implications of these trends on equities and the possibility of a sell-off. The discussion also covers the impact of upcoming CPI numbers on inflation and how core inflation is expected to remain restrained. The relationship between bond yields and equities is analyzed, suggesting that strong growth in bonds could lead to higher corporate profits and more attractive valuations for equities.

What recent fiscal development is discussed in relation to bond yields?

• A change in interest rates

• President Trump's budget

• A new tax reform

• A trade agreement

What is the potential impact of the upcoming CPI numbers on the market?

• They will decrease bond yields

• They might surprise the market

• They will definitely increase inflation

• They are expected to have no impact

What factor is expected to limit how high bond yields can go?

• A rise in unemployment

• A decrease in corporate profits

• A new fiscal policy

• Core inflation remaining restrained

How does strong economic growth affect equities and corporate profits?

• It has no effect on the market

• It suggests higher corporate earnings

• It causes equities to fall

• It leads to a decrease in corporate profits

What makes valuations more attractive according to the final section?

• A decrease in bond yields

• Strong corporate fundamentals

• An increase in technical analysis

• A rise in inflation