Friday, May 22, 2026
Stock market alert: The stock market is getting very dicey! - Part 2
The US 20-year and 30-year bond yields have crossed the 5% rate now which are precursory signals that things don't bode well in the US treasury market. In other words, this phenomenon denotes the low fixed-income investor confidence in the US debt market (bond price and yield are inversely related). As the bond yield and the stock market are inversely related, the higher bond yield will cause the stock market to crash as the bond yield will compete with the stock market return (dividend yield).
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