Bond investors, as they often do, got it right in the third quarter by anticipating a slowdown in economic growth due to the Delta variant. Bonds generally rose in value while their yields fell.
Now, those same bonds are indicating a pickup in growth this quarter and are reflecting inflation as their values fall and yields rise.
John O’Connell and Zachary Curry of Davis Rea Investment Counsel have inputted these developments into their brain banks.
They’re now looking well into 2022 and beyond to position their clients in the kinds of companies that can grow faster than the economy and compete in a higher price environment.
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