- The current expectation of sustained high global interest rates is driving investors to shift from stocks to bonds.
- Bonds now have a yield premium of 180 basis points over stock dividends, marking the highest margin in 15 years. This gap is expected to persist or even widen as traders speculate that low rates will not be a long-term feature.
- Fidelity International emphasizes that the presence of positive real yields further strengthens the argument for investing in Treasury bonds.
