Covid, Climate Change... Correction? As per the old adage, experts in the share market are being paid to be optimistic, but those in bond markets are being paid to look out for the next worry. Read any newspaper these days and there are valuable concerns everywhere. If it's not virus-related (now including Australia), then surely new concern relates to consequences of climate change turning Belgium, Germany, and other parts of Europe into submerged flood plains. So maybe the divergence between the implicit messages coming from equities and bonds should not come as a huge surprise. One looks at the prospects for ongoing strong recovery in corporate profits, and dividends, on top of capital management and corporate actions, while the other sees slowing growth, forecasts that may prove too optimistic, and potentially a delay in central bankers winding back extreme stimulus programs.