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When Are Bond Yields ‘Kryptonite’ For Stocks? The Debate Rages On…
Another day, another debate about what level on 10Y yields is the "magic" number beyond which equity investors start taking headers off bridges.
To the extent this wasn't already a veritable obsession for markets (and actually, there is no extent to which it wasn't already an obsession because it's all anyone has been talking about since the average hourly earnings number earlier this month), it was back in focus on Wednesday afternoon when stocks nosedived during the final hour of trading as l
So, I suppose you can take all that to mean a) stay long and don’t worry about steady rate moves, b) the positive correlation move has played itself out over the last year and further rate increases will stretch it into a reversion, or c) fuck it, take a vacation for the next year or two.