High and rising yields no barrier to higher stocks

Fears that high and rising Treasury yields will pummel Wall Street are understandable, but ultimately misplaced – history shows that the link between yields and stocks ranges from patchy at best, to non-existent.The third-quarter earnings season under way shows profit growth of around 5%, while the bullish 2024 outlook has held up firmly – analysts are still pencilling in earnings growth of around 12%.

“Over the past 60 years there is basically no relationship between the average level of yields and S&P 500 returns, at least at a quarterly frequency,” says Stuart Kaiser, head of equity trading strategy at Citi.The chart below from Kaiser and his colleagues shows the relationship between average quarterly S&P 500 returns and average 10-year yields every quarter going back to 1962. If there is a pattern, it is almost impossible to spot.

Slicing the data in a slightly different way, Cox calculates that there have been 50 three-month periods since 1962 where the 10-year yield has risen half a percentage point or more, including the August-October period this year.

South Africa South Africa Latest News, South Africa South Africa Headlines

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

Stocks keep gains after Fed decision; 10-yr Treasury yield hits 2-wk lowMarket News
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »

European Stocks On Track For Best Run Since July on Fed OptimismEuropean shares advanced for a fourth day, set for the longest winning streak since July, fueled by hopes that the Federal Reserve’s rate-hiking cycle is over.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

DFO assesses shrimp stocks; most stocks in the critical zoneThe Department of Fisheries and Oceans is ahead of schedule in its assessment of shrimp stocks in the Gulf of St. Lawrence.
Source: NTVNewsNL - 🏆 54. / 59 Read more »

Column-High and rising yields no barrier to higher stocks: McGeeverExplore stories from Atlantic Canada.
Source: SaltWire Network - 🏆 45. / 63 Read more »

High and rising yields no barrier to higher stocksKitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »