The rise in bond yields has left shares offering a low risk premium over bonds leaving them at risk of more softness. The conflict in Israel this week has added to the risk, although the threat should be minimal if Iran is not drawn in, avoiding a severe impact on oil supplies. AMP’s chief economist Dr. Shane Oliver looks at the parallels with the run up in bond yields prior to the 1987 crash, current geopolitical tensions and what falling rates of inflation spell out for shares over the next 12 months.
Read more here: https://www.amp.com.au/insights-hub/blog/investing/olivers-insights-risks-for-shares
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Original Author: Produced by AMP and published on 11/10/2023 Source