A note from JP Morgan points out what we all suspect:
- “Any breakoutt in bond yields beyond 5% will likely be seen as a problem for the economic outlook and equities will generally struggle against that backdrop”
Well, yeah. Equities already had a tough time when yields took a look around 5%.
More from JPM:
- defensive stocks could outperform if yields keep moving higher
- JPM add in real estate in Europe to utilities and staples as likely defensive outperformers
