Narrative - Rising 10-yr UST yield is bad for growth stocks
Reality - $IWO positively correlated with 10-yr UST yield
Reality - $IWO positively correlated with 10-yr UST yield
History shows that rising long-term rates from such low levels are POSITIVE for growth stocks/risk assets.
Conversely, falling long-term rates are NEGATIVE for growth stocks/risk assets.
Rising rates imply the bond market is becoming less worried about the economic outlook.
Conversely, falling long-term rates are NEGATIVE for growth stocks/risk assets.
Rising rates imply the bond market is becoming less worried about the economic outlook.
This chart goes back ***20 YEARS***
$IWO = positive correlation with 10-yr UST yield
Facts/reality > narratives
$IWO = positive correlation with 10-yr UST yield
Facts/reality > narratives
$SPX and yields = positive correlation when rates are low
$SPX and yields = negative correlation when rates are high
H/T @jam_croissant for highlighting the research paper
$SPX and yields = negative correlation when rates are high
H/T @jam_croissant for highlighting the research paper
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