Globally, there’s roughly $12.5 trillion of negative yielding debt. Incredibly (besides that staggeringly high number), year-over-year, this $12.5 trillion number is nearly unch’d. During the same 12-month stretch, our 10-yr Treasury yield has gone from roughly 2.05% to 0.75% as of today. Much of the rest of the world is pricing in much slower growth than they are in the US.
Low yields in general – historically low – is and has been a consistent tailwind for equities over the past 12-24 months. This pro-equity tailwind spurred from low yields will likely persist since economic growth outlooks aren’t (likely) pivoting higher anytime soon –
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|Chart of The Day – June 15, 2020|