Wall Street Pundits Rewrite Playbook as Fed Reverses Years of QE
- Goldman says too early to shift from stocks into bonds
- Robeco, Brandywine buy government bonds on recession risk
Photographer: Mark Kauzlarich/Bloomberg
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When the Federal Reserve starts pulling hundreds of billions of dollars out of the American bond market later this year, stocks will tumble, growth will weaken and bonds will rally back from their worst losses on record.
That’s one scenario. Here’s another: equities resume their ascent as the Fed pauses its interest-rate hike campaign, with inflation receding and the economic recovery intact.