Posting this because the last few threads here were really insightful.
Yields on Treasuries have been relatively high over the past few months, and some parts of the curve have even moved up. Yet, the indexes (S&P, Nasdaq) are still near highs. Historically, rising yields should put pressure on equity valuations through higher discount rates, but that doesn’t seem to be happening in full force.
I’m curious how people here are thinking about this:
1. At what point do yields start to matter for stocks?
2.Is it the absolute level, the speed of change, or how long rates stay elevated?
3.Are you adjusting your view on risk when yields are high but leadership remains narrow?
Not looking to predict a top or crash... just trying to understand how people mentally factor rates into equity risk, or whether most just ignore yields and focus on earnings and price action.
Would love to hear how others here are framing it.