Rates Reacted to Combination of Stimulus and Vaccines: Amoa

The video discusses the rapid increase in yield to 1.64% due to a $1.9 trillion stimulus and a better-than-expected economic recovery. It explores the impact of this on interest rates, projecting them to reach 2% by year-end, and questions the viability of investing in fixed income. The discussion extends to the US dollar's strength amid global growth, highlighting emerging markets and the semiconductor industry. The video concludes with a cautious outlook on low-yielding developed markets, particularly Europe, due to slower vaccine rollouts.

Why might investors still consider fixed income investments despite rising rates?

What role does credit risk play in the current economic environment?

How is the US dollar performing in relation to global yields and what factors are influencing this?