It’s been an uneventful week on Wall Street, with the S&P 500 trading flat through Thursday’s market close. On the fixed income side, the U.S. 10-Year Treasury is trading just below a 2.5% yield.
It was not too long ago that the markets were talking about rising yields and the competition bonds would be for stocks. While yields were on the rise, the narrative was subjectively doubtfully towards the idea of an investor taking on equity risk for only an incrementally higher expected return.
Boy has that changed, in November the yield on the 10-Year U.S. Treasury was trading above 3.2% and market pundits were calling for higher yields, which would hurt equities.
Since the beginning of the year, we have seen one of the strongest starts to the year for stocks. The S&P 500 ended the quarter up 13.06%.
Next week, we will be writing our quarterly commentary in which we address bond yields and what we expect for the remainder of the year in equities. In the meantime, tone in to Fox Business at 11:00a PST to watch Robert Luna, Surevest CEO & Chief Investment Strategist, discuss the latest market news.
