In an Opinion column penned for The Australian Financial Review, GSFM’s Stephen Miller shares his views on the equity and bond markets so far in 2019:

There has been much to confound the financial market punditry so far this year. Of course, there always is. Personal experience has taught this humble pundit that much.

In any case, having issued the pundits’ caveat emptor, the element of the financial landscape that continues to confound me is the quite different perceptions of the outlook being taken by developed sovereign bond markets on the one hand, and the equity market on the other.

The former is sounding the alarm on potential recessionary conditions ahead, while the latter are a lot more relaxed about what is to come.

Of course, the simple (and at this stage seemingly accurate) answer is that the decline in yields has ameliorated any nascent equity market concern.

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