The Financial Post reports in its Wednesday edition that stocks in the United States will outperform the country's government and corporate bonds for the rest of this year as the U.S. Federal Reserve keeps cutting interest rates, a survey of Bloomberg terminal subscribers shows. A Bloomberg dispatch to the Post says that 60 per cent of the 499 respondents said they expect U.S. equities will deliver the best returns in the fourth quarter. Outside the U.S., 59 per cent said they prefer emerging markets to developed ones. Those surveyed also say they are avoiding traditional ports of calm, such as U.S. Treasuries, the greenback and gold. It is a risk-on view that dovetails with bullish calls emerging on Wall Street after the Fed's half-point rate cut in September. China's biggest stock rally since 2008 after President Xi Jinping's government ramped up economic stimulus also helped boost the bullish attitude. "The biggest challenge that the U.S. economy has been facing is actually high short-term interest rates," said Yung-yu Ma, chief investment officer at BMO Wealth Management. "We'd already been leaning into risk assets and leaning into U.S. equity, and if there were a pullback, we would consider even adding to that."
© 2025 Canjex Publishing Ltd. All rights reserved.