Global Bull Market Resists Oil Price Surge and Bond Yield Hike

The global bull market in stocks has shown remarkable resilience despite two major headwinds: rising oil prices and increasing government bond yields. Brent crude is trading above $100 a barrel, while bond yields are rising globally, with Australia's and the UK's 10-year yields both above 5.00% and the US's at 4.97%. Historically, these developments would have been enough to break a bull market in stocks.

However, corporate earnings continue to climb, providing a boost to investor sentiment. The upcoming meetings of major central banks - the Fed, BOE, and BOJ - will be closely watched by investors for any signs of policy changes that could impact risk appetite. The Fed's decision is particularly crucial, as it has the most significant influence on global markets.

The unwinding of the yen carry trade may also be contributing to the current bond market selloff, as short-term interest rates rise in Japan and the yen strengthens against the dollar.

The Go Global investment strategy remains effective, with emerging markets leading the charge. Brazil's country ETF is up 6.0% in dollar terms this month, followed by South Korea at 4.3% and Poland at 3.3%. The US ETF, on the other hand, has lost 0.4% over the same period.