By Staff Reporters
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- The worst bond market decline since 1949 is set to disrupt the stock market, according to Bank of America.
- The bank said soaring interest rates will unwind the most crowded trades in the stock market, including long US tech.
- “Bond crash in recent weeks means highs in credit spreads, lows in stocks are not yet in,” BofA said.
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Specifically, ongoing bond market crash can lead to a credit event that would effectively unwind the long US dollar, long US tech, and long private equity trades, which have been widely held by investors for years. Those crowded trades have helped catapult mega-cap tech companies like Apple, Amazon, Alphabet and Microsoft into trillion-dollar behemoths that make up nearly 20% of the S&P 500.
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Filed under: Alerts Sign-Up, Alternative Investments, Interviews | Tagged: bond market collapse, bonds |
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