A near 12% advance in July and August has put US stocks on course for one of their best summers on record. And companies’ bonds have gained 4.6% in the US and 3.4% globally since bottoming out in mid-June. Having moved in tandem, the two are now set to diverge, with bonds looking better placed to extend the rally as the dash to safety in an economic downturn will offset a rise in risk premiums.
Largecaps look better as smallcaps price in strong growth: Franklin Templeton’s Arihant Jain
Largecap stocks offer a better risk-reward balance than mid- and small-caps as higher growth expectations are already priced into smaller companies, according to Arihant Jain
September 6, 2026