Equities, Bonds Indicate Trend of Higher Growth: SocGen

The video discusses the impact of higher yields on equity markets, linking it to the Fed's interest rate decisions. It highlights the economic recovery post-COVID, driven by fiscal stimulus and strong earnings, particularly in green-related equities. The discussion includes the role of excess savings in the US and its effect on future demand. The potential risk of systematic selling due to bond-equity correlations is examined, but fiscal stimulus is seen as a mitigating factor. The overall market outlook is positive, with growth expected despite challenges like the Delta variant and China's economic backdrop.

What factors are currently pressuring equity markets according to the text?

How has fiscal and monetary stimulus impacted the economy post-COVID?

What role does the Green Deal play in driving earnings and growth?

Discuss the significance of the cumulative excess savings in the US economy.

What are the potential risks associated with the correlation between bond and equity markets?