The Sky Is Falling – Q2: “Slow Growth” GloomIn the second quarter, the bond market reversed. (It is always good to underscore the inverse relationship between bond yields and bond prices. If bond investors are thus bizarrely giddy, perhaps the expected negativity has taken root in the stock market. Whenever the bond market shudders – that is, whenever the bond yields change by more than a little, either up or down – it is always taken as bad news. Correlation of Stock Market Gains with Bond Yields Chart by authorBond yields don’t even forecast inflation very well.

Source: Forbes July 11, 2021 02:15 UTC