Morgan Stanley: The market overestimates the risk of global central bank interest rate hikes and volatile stocks may benefit

On May 27, analysts at JPMorgan Chase said that the market is currently overestimating the possibility of global central banks raising interest rates, creating conditions for a rebound in low-volatility stocks such as consumer necessities and utilities. JPMorgan Chase pointed out that if bond yields soar (for example, the yield on a 10-year U.S. bond approaches the 5% mark), low-volatility stocks may break the negative correlation between them and interest rates and show a relatively better performance due to a large decline in the previous period.