Looking at a basic chart of the S&P 500, you’ll quickly notice that it hasn’t done anything in two years. And it’s remained flat since February of this year.
But why is this important? Because it has to do with the reward-to-risk potential for investors trading on the long side.
And given where interest rates are right now, things are not looking good for the bulls…
In today’s 3-minute video, I explain what happens to the equity market when rates are higher, why the reward-to-risk ratio is getting worse and why investors should shy from being bullish for the time being.
This post originally appeared at Investors Alley.