The Bond Market Just Sent Investors a Warning. Here's the Mistake I'd Avoid Making With the S&P 500.
Soaring long-term yields aren't necessarily a bad thing for the S&P 500.
Overview
The bond market continues to signal a warning that investors should take seriously.
The 10-year Treasury yield hit 5.34% last week, its highest reading since 2007. It finished September at a modestly lower 5.29%, but it's still up roughly 50 basis points since the end of August.
Details
That's potentially bad news for stocks. Higher yields increase borrowing costs for both consumers and businesses, make future corporate profits less valuable today, and give investors an increasingly attractive alternative to equities.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.