Stock Market Normality Returns, and It Hurts

The thematic bubbles peaked from January to March and began to deflate, although froth returned in October .

The strength of the link between bond yields and growth stocks was on full display on Monday and Tuesday. When 10-year Treasury yields rose above 1.8% for the first time since January of 2020 it prompted an intraday 3% selloff in growth stocks—before Treasury yields started to fall and growth stocks tore ahead again.

Back in the 1990s, and earlier, higher yields were more likely to be an indication of concern about inflation than of stronger real growth, so there was nothing good to offset the pain of higher yields for stocks, and vice versa. Since 2000, days with higher bond yields have also tended to be good days for stocks, as investors focused on the positive news of a stronger economy.

The Federal Reserve says it will accelerate the wind-down of its bond-buying program, the biggest step the central bank has taken in reversing its pandemic-era stimulus. Here’s how tapering works, and why it sends markets on edge. Photo illustration: Adele Morgan/WSJ

jmackin2 I'm waiting for the bulls, the other interests me less.

jmackin2 LOL stock market cap to GDP at 200+% but the 'market' has returned to normal, nothing to see here folks... 🤣🤣🤣

jmackin2 You had me at the word market

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

IMF: Crypto is no longer an investment hedge due to stock market correlationThe International Monetary Fund (IMF) has stated that the increasing correlation between the cryptocurrency sector and the stock market rules... Continue reading
Source: CryptoPanicCom - 🏆 563. / 51 Read more »

Asian Stock Market: Virus woes test bulls, US inflation in focusAsia shares stay mostly higher amid the market’s optimism that the Fed will take time before starting to adjust record balance sheet debt, as favored
Source: FXStreetNews - 🏆 14. / 72 Read more »

Plenty of risks, but analysts are skeptical on a serious stock market downturnInflation, central bank policy tightening and Covid-19 infection rates continue to threaten the bull run for stocks. Thanks you for the great review that we had the other day. You made it easier for me to understand MichaelWeldon_ $43k earned🙌 Meaning, “There’s a crash of historical proportions coming.” They've been saying this for years
Source: CNBC - 🏆 12. / 72 Read more »

5 things to know before the stock market opens MondayU.S. stock futures dropped Monday after a rough first trading week of the new year as tech stocks were battered by rising bond yields
Source: CNBC - 🏆 12. / 72 Read more »

We're Buying More of This High-Quality Health-Care Stock Amid the Market Sell-OffThis buy will increase DHR’s weight in the portfolio from about 1.78% to roughly 2.13%. Sellout Kramer
Source: NBCDFW - 🏆 288. / 63 Read more »