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Stocks as Inflation Hedge Is New Catch-All Narrative for Market Rally

  • Stocks have advantage vs. bonds in times of inflation: PRSPCTV
  • Backdrop for S&P 500 profits drivers broadly supportive: Golub
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UBS’s Kaiser Likes U.S. Tech, Financials as Volatility HedgesSource: Bloomberg

Call them brazen, call them naïve, but stock investors are giving no sign of being daunted by the hottest inflation in decades or the accompanying surge in bond yields.

Their boldness has sent analysts in search of ways to explain how the S&P 500 Index has managed to rally in five of the last six sessions, even as the Federal Reserve promises higher rates while war rages in Europe and Treasury rates see the biggest two-day jump in two years.