Since 1983, here's the tipping point where bonds spell trouble for stocks
The eagerly awaited inflation data for August came in weaker than forecast, in what proved to be good news for the bond market but not for a stock market that’s been struggling this month.
That bond yields are so low with inflation north of 5% has helped lift stocks, with the S&P 500 SPX,
Eddy Elfenbein, the portfolio strategist of the AdvisorShares Focused Equity ETF and editor of the blog Crossing Wall Street, decided to look at the correlation between inflation-adjusted bond yields and stocks.
“If someone says that the stock market is cheap or expensive, naturally you need to ask, compared to what? For judging stocks, the 10-year Treasury yield is a good starting place. The problem with looking at Treasury yields is that inflation can greatly impact them. …
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