Decoding the Factors Behind the Positive Relationship Between U.S. Bond Yields and Equities

Former JPMorgan Global Chief Economist (Ph.D. in Economics) and Current BrightQuery Chief Economist

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Theory suggests this is not supposed to occur.  Low U.S. bond yields should boost stock prices as future earnings streams are worth more when we use a lower discount rate.  In contrast, when bond yields rise, it will devalue the future stream of corporate earnings and depress equi…