The Federal Reserve in March raised its forecasts for GDP growth, inflation and employment, based on the $1.9 trillion in new stimulus signed into law and an accelerated vaccine rollout.
As part of the U.S. economy's welcome recovery from the pandemic, inflation expectations and nominal interest rates have been on the rise-more recently, so have real rates, and the market response has become somewhat complicated.
Fidelity's Asset Allocation Research Team (AART) examines major themes in global financial markets and presents its investment outlook in this quarterly market update.
The post-World War II shift to a peace-time economy, which catalyzed a cyclical rebound of nominal growth and inflation, may be the closest historical analog to the upcoming post-COVID era where vaccinations and reopening gain steam through 2021 and 2022.
Although the "meme stocks" have been dominating the news with their meteoric rise, don’t forget that the entire US market is at all-time highs.