BSJS - Yields - It Will All Come Down To This

• The recent rise in Treasury yields has spooked the equity markets. This is obvious from the recent performance of the bond markets as compared to the stock markets.
• Inflation is not the cause of this rise, but rather a combination of the stimulus measures, a rebounding economy, our COVID-19 pandemic as it plays itself out, a change of Administrations, which leaves people guessing about where we are actually going and a great uncertainty about what the Fed is going to do or not do.
• In the meantime, it is the valuations in the equity markets, the actions of Robin Hood and his merry band, the unregulated gambling in Bitcoin and an overall reaction to the market frenzy that may cause further problems in the equity markets.

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