Blue Wave Bets Revive Reflation Trades All Over the World
- Small caps and cyclical stocks outperforming as bonds decline
- Democrat control of Senate would revive stimulus expectations
Photographer: Elijah Nouvelage/Bloomberg
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Reflation trades are getting a new lease on life after the Democrats moved closer to Senate control in Georgia’s runoff elections.
Small-cap stocks and banks are winning, while the yield curve is steepening as a fresh wave of money gushes into bets tied to more economic stimulus.