Rising bond yields: US stock markets in danger? Potential impact on the S&P 500 Index and the best strategy for investors.

Rising bond yields: US stock markets in danger? Potential impact on the S&P 500 Index and the best strategy for investors.

According to a report from finanzmarktwelt.de, US yields rose sharply in August, leading to a decline in stock markets. The benchmark 10-year bond yield hit 4.35%, prompting a sell-off in US bond markets. However, yields fell slightly again, leading to a recovery in stock markets. Investors expect the stock market rally to be able to weather higher bond yields, but a correction of up to 10% is likely.

The sharp rise in US yields has led to concerns on the stock markets. A rise to 4.5% would likely weigh on the S&P 500 Index and lead to losses. However, investors expect that stock market performance can be maintained despite higher returns. Some experts even believe stocks are well-positioned to weather the impact of higher yields compared to bonds. The positive macroeconomic surprise could help ensure that stocks continue to be an attractive investment opportunity.

According to the Bloomberg survey, 59% of investors believe a 60/40 portfolio (60% stocks, 40% bonds) is a sensible investment strategy. However, tech stocks could be the losers if yields rise, while banks are seen as the biggest winners. Expectations for value stocks versus growth stocks have also changed, with speculation that value stocks could outperform their growth counterparts.

Overall, the financial industry remains optimistic that the stock markets can remain stable despite rising returns. However, it is recommended to remain flexible in times of increased uncertainty and adjust the portfolio accordingly.

As finanzmarktwelt.de reportssetTimeout 1000Failed