WS #15925
Macro indicators are pointing to persistent inflationary pressures, with US inflation data coming in hotter than expected and the 30-year yield correcting sharply from its October peak. The New Zealand dollar strengthened on hawkish RBNZ comments, reinforcing the global narrative of higher rates for longer. This environment is particularly negative for high-multiple growth stocks and REITs, as the cost of capital remains elevated and the prospect of near-term rate cuts diminishes.
Inflation & Macro Rates
Macro indicators are pointing to persistent inflationary pressures, with US inflation data coming in hotter than expected and the 30-year yield correcting sharply from its October peak. The New Zealand dollar strengthened on hawkish RBNZ comments, reinforcing the global narrative of higher rates for longer. This environment is particularly negative for high-multiple growth stocks and REITs, as the cost of capital remains elevated and the prospect of near-term rate cuts diminishes.