Market Volatility and Economic Growth

Short-term volatility is anticipated as global markets adjust to significant changes in economic leadership and policies. The recent transition in the U.S. presidency has introduced uncertainties, particularly regarding fiscal and monetary policies that could impact market stability. Despite this turbulence, underlying productivity factors are expected to remain the more influential drivers of economic performance, overshadowing short-term fears. For instance, while U.S. government bonds are experiencing rising yields, they reflect a robust economy growing above its long-term trend, distinguishing it from slower growth in other parts of the world.