In the nine days following the election, the S&P 500 surged over 4% to notch an all-time record close of 5949 on Thursday, November 14. Even after a big drop to end the week, the big cap index is still up over 3% since Trump clinched his overwhelming win.
But the media and the average folks and money-manager whales wagering on flush times ahead are missing the big overlooked story: The shocking, sudden rise in interest rates.
As Warren Buffett has warned, bonds compete with stocks for investors' money, and when super-safe fixed income provides puny yields, stocks can be worth a lot more. Well, bonds just got far more lucrative overnight.
The 10-year just took one of its biggest quick leaps in history, a bad omen for stocks.
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