/biz/ - Business & Finance

>believing the yield meme
the common theory for yields rising = bearish equities is circular logic if you think about it. yields rise to attract more buyers towards bonds which means that equities have a better outlook than bonds in the first place. if anything, yields increasing is indicative of inflation which is bullish for equities. no, the real reason why equities dumped last week despite rising yields is to allow market makers even out the leverage in the market, and to accumulate inventory to fill the spreads which they have no hope of doing at the rate the market was going up. simple supply and demand.
dont believe me? zoom out on the yields vs equities: yields have been increasing consistently since the crash last year, and we're supposed to believe a little jump in yields suddenly caused a massive dip in the stock market last week?