August 2, 2021

What to expect if ‘peak everything’ already has happened and markets feel the force of gravity again

But gravity also has emerged as a concern for soaring U.S. stocks, bond prices and other financial assets as the force of extreme fiscal stimulus, meant to get the U.S. economy to the other side of the pandemic, begins to ease up.

After a stunning first-half, the rest of 2021 could be poised for a slower pace of U.S. economic expansion and for the rate of inflation to come back down to earth.

A bit more grounding wouldn’t entirely be a bad thing for financial markets either, according to investors and analysts who spoke with MarketWatch about what to expect in the year’s second half, as the dust settles with the American economy recovering and trillions of dollars worth of Washington fiscal stimulus fading into the background.

“It is very possible that we have seen peak everything,” said Giorgio Caputo, head of the multi-asset team at J O Hambro Capital Management….

Read full article here: