In September, the inflation rate in the United States rose to 3. 7% annualized, the seventh straight month it's been above 3. 3%. And it's been above the Fed's 2% target every month since early 2021. That's helped push long-term Treasury yields up to their highest levels in two decades and extended a bear market in government bonds that goes back roughly five years. Stocks, however, continue to hold up. Strong corporate earnings growth tied to the artificial intelligence (AI) trade is, for now, outweighing the downward pressure from higher rates. But that probably won't last forever, and we're already seeing some anti-inflation plays doing well.
POLARIS INSIGHTS