Today, I wanted to take a minute to remind ourselves of the major disconnect between the equity and bond market.
We saw some hot job reports hit the news last week, and the odds are extremely high that things are going to break at the rate at which bond yields will go higher – with bond prices going lower.
If you were to go through about 20 years of data, you’d be able to start to see the disconnect between the two markets I mentioned.
Looking at a chart, it seems that the equity market struggles to catch up with the bond market and will oftentimes end up lower.
Seeing this, I instantly have two questions: What needs to happen in order for the equity market to catch up? And what’s the risk involved?
Let’s find out…
In today’s 2-minute video, I explain the risk involved in the equity market, what bullish investors need to keep in mind and how likely the equity market will catch up to the bond market.
I release these weekly tips every Thursday for free, so stay tuned and stay subscribed here.
Editor of 11-Day Trader