Investors Are Betting On A Dream Soft Landing

Stéphane Renevier

about 2 months ago4:00 mins

Investors Are Betting On A Dream Soft Landing

The S&P 500 rallied 3% Wednesday, ending November up 5%. That followed another 8% gain in October. And it means the S&P is now down only 14% year-to-date. In a year when inflation broke 40-year highs and the Federal Reserve (the Fed) hiked interest rates more aggressively than ever to try to tame it, that’s pretty remarkable. But, it may suggest a bit of over-optimism…

Why are stocks rallying?

Actually, it’s not just stocks that have been rallying, but also bonds and gold. In fact, long-term US Treasury bonds (orange line) and gold (purple) did even better than stocks in November.

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