Multi-asset sentiment indicator: Interest up for small and mid-caps

The relative fortunes for equity and bond investors remain firmly tied to the outlook for inflation and therefore to the level of interest rates that monetary authorities deem best suited to cope with it. Investors are eager for inflation to be contained and for interest rates to be lowered so that current asset prices can continue to go up, or at least for current valuation levels to be justified. Some multi-asset managers are concerned that this may not happen at the pace that investors still expect and they worry that if monetary authorities disappoint, it will put downward pressure ...