Articles tagged with TNX

If you've been around the stock market for a long period of time, then I'm sure you can agree with this. Nearly a year ago, I made a really good call, expecting significant challenges in 2022, and even suggesting that we could see a low on the S&P 500 in the 3500-3800 range - on a worst case basis. Well, after moving slightly below 3500 in October, interest rates began to drop rapidly, falling from 4.33% on the 10-year treasury yield ($TNX) to 3.41%. That was another solid call. But my calls weren't perfect. With this drop in the TNX, I was expecting a big market rally led by growth stocks. Yet here we are, on December 21st with just ten days remaining in 2022, and I'm still waiting for growth stocks to truly launch - especially the large cap growth names....keep reading

During normal market periods (2022 is not normal, by the way), we tend to see the S&P 500 and 10-year treasury yield ($TNX) trend in the same direction. There's a clear positive correlation between the two. The reason is fairly simple: Strong economic conditions would favor the stock market (S&P 500), but those same conditions would tend to cause selling in bonds as rates rise. The price of bonds and the direction of yields are ALWAYS 100% inverse....keep reading