JPMorgan Chase & Co.’s Grace Peters favors equities over fixed income as rising bond yields test corporate earnings. She identifies strong growth data, AI infrastructure financing, and oil prices above $100 a barrel as key drivers pushing yields higher. Peters expects a “broadening earnings supercycle” and believes equities will serve as the primary growth engine in portfolios.

While acknowledging that the 10-year Treasury yield has risen roughly 40 basis points this month, she argues equities have largely absorbed the impact. The deepening bond selloff has pushed US long-term yields to levels not seen since July 2007, with European yields also climbing. Peters remains confident that earnings expectations for 2027 will be met or exceeded, advising investors to focus on companies with pricing power and visible earnings streams.

She maintains that fixed income still has a role but requires selectivity. Produced with the assistance of Bloomberg AI.