The Bond Market Sounds an Alarm. The Stock Market Will Make a Big Move if History Repeats.
Treasury bond yields have surged to levels last seen before the S&P 500 entered a deep bear market in 2007.
Overview
The U.S. stock market is having another good year. The S&P 500 (SNPINDEX:^GSPC) has advanced 13% and the Nasdaq Composite (NASDAQINDEX:^IXIC) has added 16% amid strong corporate earnings growth, especially in the technology sector.
However, the bond market is sounding an alarm for the first time in nearly two decades -- Treasury yields have reached levels last seen in 2007 -- and it hints at a potential downturn in the stock market.
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Originally published at www.fool.com.
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