With no handy crystal ball or tea leaves to give us a glimpse into the future, we will be keeping a very close eye on both wage growth and interest rate moves for any sign of a rising risk of US slowdown.
At the moment, these factors are subdued, but investors should be aware of the risk this poses to government bond prices, particularly US Treasuries.
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For now, we continue to 'follow the growth' and allocate to markets with solid fundamentals and attractive relative yields, such as high yield and emerging markets debt, as central banks still underpin the search for yield.
Nandini Ramakrishnan is global market strategist of JPMorgan Asset Management
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