Italy's horse of a different color

  The Ebbing Tide: is the financial system ready for STEADY positive rates? disclaimer: This is not financial advice, your mileage may vary. there is in my opinion a little misconception about how “resilient”, to further abuse a misunderstood word, Equity markets are. Especially if one, like me, “Pivoted” to bonds in the early stages. Specifically, I want to introduce you to a frame of reference I use in my day job, i.e., checking equity indices against bond yields. This in Europe has very interesting outcomes. Data are sourced from Bloomberg unless otherwise stated, but they are widely available elsewhere for those who want to dabble with spreadsheets, which is all the expertise required to replicate my results. So, let's start. People are making a big fuss now about inflation, but the truth is that apart from marketing reasons, asset managers should have very little interest in the subject matter per se. In fact not only all the income or profit is nominal, but inflation is t...