Lates News

Henry McVey, head of global macro and asset allocation at KKR, stated in a research report that the expansion of fiscal deficits and stubborn inflation means that bonds do not always rise when stocks sell off, breaking the traditional relationship between the two assets. "On days when investors seek safety, government bonds no longer serve as the 'shock absorber' in traditional investment portfolios," McVey wrote in the report. The alternative asset management firm also believes that there is a "structural" risk of the US dollar weakening as President Donald Trump seeks to reshape the global trade landscape. McVey pointed out that the dollar is currently overvalued by about 15%, its third highest level since the 1980s.