MRB on Reuters – August 7, 2023
A U.S. economy growing more than expected has pushed aside fears of a recession, but rising bond yields pose a risk to equity investors, said Phillip Colmar, Global Strategist at MRB Partners in New York.
“The bond market is coming back into the driver’s seat again,” he said, much as it was in 2022. “If the cost of capital isn’t the thing causing economic damage here, as everybody predicted and our framework suggests it isn’t, then it’s pretty hard to argue for rate cuts.”