Stocks Rally on Hope of Falling Inflation, But Recession Risks Linger
• Best month for world stocks in 3 years, with MSCI world index up 9% • ICE BofA index of investment grade bonds set for best month on record, returning almost 4% • Rally driven by hopes inflation falling and central banks lowering interest rates • But stocks may be too optimistic, ignoring recession risks that support bonds • Investors expect further gradual falls in Treasury yields as growth softens