In a recent Bloomberg article, “Trump Threats, Fed Feuds Fail to Break Markets as Logic Prevails,” Denitsa Tsekova spoke with CIO James St. Aubin, exploring why markets are showing remarkable resilience despite political noise, tariff threats, and central bank infighting.
James offers a note of caution for investors: “I would not get too comfortable with idea that inflation fears are gone for good. Higher inflation generally increases correlation, as it is the ‘enemy’ of most asset classes,” James says. “A fear of stagflation is really the outlook that creates high correlation between stocks and bonds.”
His point is clear: when markets appear to make sense again, that’s exactly when investors should be sharpening their risk radar.
