Tom Essaye Quoted in Barron’s on August 15th, 2023
Stocks Could Be Sandbagged by Rising Treasury Yields
“That’s why rising Treasury yields are a problem for stocks, because investors will rotate out of riskier equities and into less-risky bonds because the additional return in stocks isn’t worth the volatility,” argues Essaye, who believes that while the current environment makes the historical 4% risk premium unlikely, a “fair” number for 2023 is “definitely higher than 1%!”
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