Slower pace of GDP expansion could mean a slower pace of monetary tightening by central banksI am allowed to say this because I come from farming stock myself: farmers complain constantly, about everything. Too wet, too dry, too hot, too cold, etc etc. Investors are not so different.
The opening months of this year brought an inflation panic. Bonds dropped hard because they are allergic to inflation, which eats in to their (rather skimpy) fixed payouts. Stocks dropped because fund managers decided that the US Federal Reserve would dish out half-point rate rises like sweets at every meeting to try and pull inflation down. The “everything rally” unravelled and left many fund managers with nowhere to hide. The horror!