What our revised forecasts for Treasuries imply for US equities

Although we have revised up our forecasts for the 10-year Treasury yield between now and the end of 2025, we aren’t inclined to change our upbeat projection for the S&P 500 over this period. This is because the big increase in equity prices that we are anticipating from next year has much more to do with a view about Artificial Intelligence (AI) than with the outlook for “risk-free” interest rates.

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