42 days ago • Posted by Paul de La Baume
Higher real yields pressure risky assets #stocks #markets #yields #Fed
Real yields are threatening to break higher, pressuring stocks and other risky assets. The market is attempting to re-price a less accommodative Fed, and modestly higher interest rates in the years to come. Investors will be watching closely next week's Fed meeting. Volatility has picked up for risky assets, as investors brace for pressure on high-valuation assets with discounted cash-flows far out in the future. The recent market selloff in high-growth stocks suggests investors are particularly sensitive to a slight rise in yields, as seen over again several times this year.