Report
In the short term, equities are preferable to bonds; in the medium term, the opposite is true
In the short term (2023-2024), equities are preferable to bonds (we look at the United States and the euro zone), due to rising long-term interest rates, which hurt bonds, and rising corporate profit margins, which favour equities. But in the medium term (2025 and beyond), the very likely rise in real interest rates (due to high investment needs, central banks’ reaction to structurally higher inflation, increased interest rate volatility) will, on the contrary, be positive for bond investments and negative for equity valuation.
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Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
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