Welcome to Thoughts in the Market.

I'm Andrew Sheets, Chief Cross-Asset Stragist for Morgan Stanley.

Along with my colleagues bring you a variety of perspectives.

I'll be talking about trends across the global investment landscape and how we put those

ideas together.

It's Friday, February 19th at 2pm in London.

The talk of the market at the moment is interest rates, the fact that they're rising and whether

this will be a problem for other markets.

As we've discussed on prior episodes of this program, I'm relatively relaxed about

this risk.

As there's a lot of historical evidence, the markets can do just fine if yields are

rising because the economy is getting better.

But this remains a contentious debate.

And with my colleague Michael Zezis expecting the Biden administration to pass its American

rescue plan by mid-March, I'm getting more questions about whether the pendulum might

now be swinging too far with all of that fiscal support creating growth and inflation

that's too strong for the markets liking.

So here's what I'm focused on.

First, there's an actively traded market and expected U.S. inflation.

These expectations point to higher inflation over the next five years, but then, importantly,

lower inflation in the years after.

So far, these markets aren't suggesting that things get out of hand, but rather, are

...