If you need assistance, please call 407-288-5182

MBS Day Ahead: Surprising Resilience in Bonds or Surprising Strength in Stocks?

Friday, July 10, 2020   /   by Erik Bjorklund

MBS Day Ahead: Surprising Resilience in Bonds or Surprising Strength in Stocks?

Conventional wisdom holds that stocks tend to do better when bonds do worse.  The logic is simple.  When investors feel more optimistic or more risk-tolerant, they're more likely to re-allocate some bond holdings into stocks.  When they're fearful and risk-averse, bonds get the nod.  The result is short-term correlation between stock prices and bond yields, and we've seen plenty of that as both sides of the market capture investor sentiment surrounding coronavirus numbers.

But the important part of this thesis on conventional wisdom is the "SHORT-TERM" caveat. ...

...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Fidelity Home Group | Mortgage News | Mortgage Rates
eXp Realty
Tony Fuentes
1999 W. Colonial Dr
Orlando, FL 32804

© 2021 My Florida Regional MLS DBA Stellar MLS, Inc.. All rights reserved. The data relating to real estate displayed on this website comes in part from the Internet Data Exchange (IDX) Program of My Florida Regional MLS DBA Stellar MLS, Inc. All listing information is deemed reliable but not guaranteed and should be independently verified through personal inspection by appropriate professionals. Listings displayed on this website may be subject to prior sale or removal from sale; availability of any listing should always be independently verified. Listing information is provided for consumers' personal, non-commercial use, solely to identify potential properties for potential purchase; all other use is strictly prohibited and may violate relevant federal and state law.4/12/2021 1:51 AM CST
This site powered by CINC: www.cincpro.com