He’s referring to the 10-year Treasury yield, which already sits around 4.75%, the highest since 2007. In his mind, it will rise to 5% and possibly even higher.
Surging Treasury yields have been a major headwind for equities, which have seen their appeal dented by the ever-rising risk-free return offered to bond investors. The thinking is: why would you roll the dice on the S&P 500 if you can get a zero-risk return of roughly 5%?
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
Login if you have purchased