Growth stocks seem concerned with only one thing – printing fresh highs.
The Tech sector ETF $XLK posted new 52-week highs yesterday. And the Communications ETF $XLC rallied within reach after taking out its Aug. ‘22 pivot highs.
So where does that leave bonds and other long-duration assets?
If these base breakouts across growth sectors hold, I imagine bonds have some serious catching up to do…
Why?
Growth stocks tend to trend with bonds since they’re both long-duration assets. Changes in interest rates directly impact US Treasuries and affect tech stocks more than other equities.
Check out the tight relationship between the Long-Term Treasury ETF $TLT and the Technology sector $XLK: