Wolfe Research Turns More Defensive on Risk Assets as Yield Pressures Build
Key takeaways
- In a client note published over the weekend, Roth said Wolfe Research has also revised its Federal Reserve outlook, now expecting all anticipated interest rate cuts to be delayed until the second half of 2027.
- Wolfe Research identified three scenarios that could potentially bring yields lower.
- However, the firm cautioned that none of those outcomes would likely be particularly supportive for financial markets.
Wolfe Research Turns More Defensive on Risk Assets as Yield Pressures Build Fiona Craig Sun, May 24, 2026 at 10:08 PM GMT+7 2 min read chart21 Rising Tension Between Bonds and Equities Wolfe Research economist Stephanie Roth has adopted a more cautious stance toward risk assets, arguing that the growing disconnect between climbing bond yields and resilient equity markets may become increasingly difficult to maintain.
In a client note published over the weekend, Roth said Wolfe Research has also revised its Federal Reserve outlook, now expecting all anticipated interest rate cuts to be delayed until the second half of 2027.
According to Roth, “something eventually has to give,” as bond markets increasingly reflect expectations for persistently elevated inflation while equity markets continue to price in a much more favorable economic backdrop.