Will the Fed Save Us... Again?
Posted March 8, 2021
You gotta love the timing of this stock market correction that has been wreaking something akin to havoc on stock prices the last couple of weeks. By now, you’ve heard the whole “bond yields rise, stocks — especially tech stocks — sell off.”
And the yield on the 10-year bond has indeed ramped higher, currently up to a whopping 1.6%! The strategist types are scared of 1.7%. Apparently, that is the breaking point. They say that if the 10-year Treasury goes higher than that, all hell will break loose.
I don’t know about that. This whole decline “feels” orchestrated by the Big Money trading algorithms. And since those algorithms power 75% or so of all trading, they can push prices in whatever direction the programmers want.