Posted 10/18/2023, 2:04:00 PM
Stocks Resilient Despite Bond Market Signals of Higher Yields
- Equity markets calling bond market's bluff by assuming higher yields driven by momentum, not economic signals
- Stocks holding up despite rapid rise in Treasury yields, questioning idea bonds are smartest money
- Stock resilience consistent with seasonal strength into year-end
- Unclear what will cause lower interest rates - geopolitical uncertainty could cool yields without spooking stocks
- Rapidly rising yields often rattle stocks by signaling Fed policy mistake and slower growth
