10/21/2022The 10 Year blink
AUTHOR:TOWNEWEALTHMANAGEMENT.NET/BLOG10/21/2022 Towne Wealth Management BLOG:
The 10 Year blink
We are looking for a “Blink,” according to MarketWatch 10/18/2022, making the point that the stock market usually bottoms not once the Fed stops increasing rates…but when the bond market…."Blinks.”
What is this “Blinking” you ask?
The article looked at the relationship between the 10-year Treasury yield and the S&P 500 index in the last several Fed tightening cycles. It found that in those five periods, since the mid-1980s, when the benchmark 10-year yield peaked, bond investors had “blinked” before the Fed stopped raising its policy interest rate.
Therefore....
What is the conclusion drawn in the MarketWatch Article?
Wait for the 10-Year Treasury to "Blink"
Before buying stocks!!!
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The opinions expressed in this material do not necessarily reflect the views of LPL Financial and based on the political content of this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in this material may not develop as predicted. All indices are unmanaged and may not be invested into directly.
Russell E. Towne, LPL Financial Advisor, is a registered representative with and Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.
The opinions expressed in this material do not necessarily reflect the views of LPL.