As growth slows out and fears about inflation fade, expectations of higher interest rates in the major developed economies should be scaled back significantly. In the second half of 2011 we expect US Treasury yields to drop back sharply, and the US equity market to pare its gains, but emerging market assets to rebound as concerns about aggressive monetary tightening wane. Most commodity prices are likely to drop sharply this year, but the price of gold should climb again.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services