10 Year Yield: This Could Cause A Hard Sell In 2021

The 10-year yields have been hammering on 1% for the last 6 months. While 1% is still historically low for the 10-year yield, low yields (interest rates) have been the main reason why stocks have gotten to such lofty valuations. The concept is, when you cannot make money in bonds, stocks are the only place to put cash. Based on the 10-year yield hammering on 1%, charts dictate a breakout coming in early 2021.

As interest rates (yields) rise, investors and funds holding billions of Dollars in stocks will have to reallocate to bonds. The higher yields go, the less attractive high valuation stocks are. If yields pop to the next resistance of 1.5%, that could alone cost the S&P 10%. The 10-year yield is one of the key components to stock performance in 2021. Keep it on your radar. 

(Click on image to enlarge)

Disclaimer: All comments made by InTheMoneyStocks, LLC and its subsidiaries, instructors, and representatives are for educational and informational purposes only and should not be construed as ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.