As the economy recovers and cyclical stocks begin to outperform, how should you think about the connection between equities and US Treasury yields?
A recent rapid increase in US Treasury yields has unsettled equity markets, and to understand this short-term volatility we need to look back to the fourth quarter of 2020. During this time, sector leadership in the market shifted quite dramatically from specific product and service growth-oriented companies to those that benefit from a revival in broader economic activity – cyclical industries such as energy, industrials, metals and mining. Click to read article
