10 year yield vs SP500
US 10 yr yield curve vs the SP 500 weekly chart: I do not see any strong correlation between these two. When a market is overbought, a correction is due because of supply and demand reversal, not because of the bond curve. We have seen the market and the bond yield converge and diverge over the years. We have often seen that media tend to look for excuses when the market has a pullback. We need to remember that what behind a stock is an actual company. As long as the company can bring cash in, the stock will grow. Simple as that.
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