By Staff Reporters
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Winners: While the broader S&P 500 fell in April, the health care, utilities, consumer staples, and real estate sectors have all gained.
Bonds: The 40-year bull market in bonds could be on its last legs as interest rates continue to rise as higher interest rates often translate into lower stock prices. Now the widely-followed 10-year US Treasury yield is pushing against its 40-year downtrend line that starts with the 1981 peak in interest rates of 15.81%.
Ten Year Treasury bond: 2.843% |
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If the 10-year US Treasury yield decisively breaks above its 40-year downtrend, that could be seen as the start of a new uptrend, which would mean a continued rise in interest rates and ongoing pressure on stock prices.
But if the 10-year yield gets firmly rejected at the downward sloping trend line, one could expect a continuation of lower interest rates for longer, which could help boost valuations for risk assets and drive stock prices higher.
Covid-19: Cases are rising in more than half of all states due to the new coronavirus subvariant, but White House Covid-19 advisor Dr. Ashish Jha said Sunday the vaccines are still “holding up” against the virus and the new strain does not cause more severe infection.
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Filed under: Alerts Sign-Up, Glossary Terms, Investing | Tagged: Ashish Jha, bonds, Covid-19, inflation, S&P 500, US treasury yields |
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