Bond Yields
See where yields on the US 10Y notes are: 4.5%. What do you think cooperates are paying? Way more than that. For a stock market that’s been breaking all time highs for over a year, and with a potentially new technology like AI sucking most of the liquidity, I think caution is very much warranted. There’s no real fear but there’s certainly capital competition now and with the bond market telling the FED we already hiked for you, that’s the real caution cue.
Major growth stocks and high cash burn companies are being sold off because soon, there’ll find it difficult to see liquidity.
