Why the Bond Market Could Be the Biggest Risk to Equities
The bond market could be the biggest risk to further equity gains after U.S. 10-year Treasury yields rose this week to their highest level since 2007, Tony Pasquariello, global head of hedge fund coverage within Global Banking & Markets, said. He also said that shorting bonds can be an effective hedge for equities, that S&P 500 earnings growth remains strong but will likely moderate, and that Japan's TOPIX offers opportunities amid shareholder reform and government spending on defense and industrialization.
Read original