The Bond Market Is Rattled, and History Says That Could Be a Warning Signal to Investors
Bond yields rose ahead of the Fed rate hike, and investors should be worried about Wall Street and Main Street.
Overview
The S&P 500 index (SNPINDEX: ^GSPC) is trading near all-time highs despite a worrying list of negatives. JPMorgan Chase (NYSE: JPM) CEO Jamie Dimon recently laid out some of his concerns, describing "geopolitical tensions and wars, sticky inflation, large global fiscal deficits and elevated asset prices" as "tectonic plates" that could collide. The CEO was clearly warning about the potential for a market "earthquake."
The bond market is clearly concerned, with yields rising. The Federal Reserve is also worried, noting it just increased interest rates. Stock investors shouldn't ignore these concerns, as they warn about what could be in store for Wall Street and Main Street.
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Originally published at www.fool.com.