- Stocks have fallen in recent days amid rising 10-year Treasury yields.
- 48-year market vet David Hunter says this is temporary, and stocks will melt up into Q2.
- But then overheating will lead to Fed tightening, Hunter said, triggering an 80% drop in stocks.
Stocks seem to be at a fork in the road.
After hitting fresh highs in mid-February, they’ve balked at rising interest rates as another stimulus package stokes further inflation fears, and increasing vaccination rates give hope of a full economic reopening in the near future.
With valuations still overextended by many measures, are stocks due to slide further? Or will investors learn to tolerate the rising rate environment? Or, are rates due to take a break, lifting stocks higher?
Word abonnee van Business Insider