Equity and fixed income markets have stalled in recent weeks as investors priced the benefits for risky assets from the trillion-dollar US fiscal stimulus, while the prospects of a further massive infrastructure package remain unclear. It is not just the ultimate size of this spending plan that is capturing investor attention, but also how it will be financed.
Another big topic is the outlook for inflation. Are further surprises in store? And how would those fit with concerns that US growth is peaking? Stagflation anyone?
Watch our asset allocation video with chief market strategist Daniel Morris to find out why we still favour risk and equities.
