Market news
26.03.2021, 10:19

Three reasons why the US equity rotation has further to go – CE

FXStreet reports that economists at Capital Economics think that the outlook for the coronavirus, the economy and policy in the US points to a continuation of the rotation currently underway in its stock market.

“We forecast that US economic growth will be exceptionally strong. We are projecting the strongest annual GDP growth since at least the early 1980s, and think that consensus forecasts are still too low. Stronger-than-expected cyclical growth would probably boost the earnings of industries that struggled in the anaemic economic growth and low inflation of the 2010s to a greater extent than those that did relatively well in that period – mostly tech firms whose earnings grew primarily because of structural shifts rather than the economic cycle.”

“We are anticipating further increases in long-term interest rates. We expect the yield to climb above 2% this year. Rising yields have at least coincided with some of the industries hit hardest early in the pandemic doing well recently. So, to the extent that changes in yields do matter, they might support the rotation.”

© 2000-2021. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at

Live Chat E-mail
Choose your language / location