Today, I wanted to take a minute to remind ourselves of the major disconnect between the equity and bond market.
We saw some hot job reports hit the news last week, and the odds are extremely high that things are going to break at the rate at which bond yields will go higher – with bond prices going lower.
Looking at a chart, it seems that the equity market struggles to catch up with the bond market and will oftentimes end up lower.
Seeing this, I instantly have two questions: What needs to happen in order for the equity market to catch up? And what’s the risk involved?
This post originally appeared at Investors Alley.