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Investment Weekly

Mini growth scare
28 February 2025

    Chart of the week – Mini growth scare

    Chart of the week – Mini growth scare

    A mini growth scare has rippled through US markets over the past week or so. Equities are down, so too is the ‘Dixie’ dollar index, and Treasuries have rallied, with the yield curve flattening despite short-term rate expectations declining. Thus far, we see developments as consistent with our “spinning around” scenario. Namely, moderating US growth and frothy valuations in some equity sectors leading to a rotation into markets where expectations still leave room for upside surprises and where valuations are closer to historic norms.

    More from this week:

    Market Spotlight

    • Sage advice

    Lens on…

    • Great expectations
    • Room to disappoint
    • China bonds outlook

    Download the full report PDF, 547KB