Five reasons for bond market optimism – Morgan Stanley

Bond investors are raising a red flag on the economy, inflation and interest rates, but their fears may be overblown. Here are five reasons for optimism, according to Lisa Shalett, Chief Investment Officer, Wealth Management at Morgan Stanley.

“Historically high US household savings, estimated at above USD2 trillion, that could fuel consumer spending.”

“A technology and digitization cycle that is driving both disruption and heavy corporate spending in virtually every industry.”

“An infrastructure rebuild that could come with more fiscal stimulus.”

“Shifting demographics toward a younger workforce entering their prime.”

“A US banking system that is well-capitalized to lend.”