Why the stock market’s ‘worst-case’ scenario depends on these 3 ingredients
MarketWatch
2/20/2021
THE TELL
Investors are fretting over Treasury yields and wondering when a rate rise could start to crimp a stock-market rally, though they weren’t yet worried enough Tuesday to prevent major benchmarks from notching another round of all-time peaks.
So when does the pain of rising yields, which makes it harder to justify stretched equity valuations, start to make a difference? With the yield on the 10-year Treasury note moving back above 1.2%, a challenge of the 1.5% area, which is the equivalent of the dividend yield on the S&P 500 could soon be in store, wrote Sean Darby, global head of strategy at Jefferies, in a Tuesday note.