Stocks are going up. Interest Rates are not.
This we know.
If you haven’t seen our thoughts on stocks lately, I encourage you to catch up here: November – October – September. Today, however, we’re more focused on the bond market and what we can learn from it.
First of all, here is the US 10-year Yield. If we’re below 2.07 then there is no reason to expect a severe bond sell-off. I guess it depends on what you consider severe, but bigger picture I don’t think there is any change in trend until we’re above that. And it’s not happening tomorrow. [Read more…]