Could you explain a concept with bonds that I can’t really understand.
I read that a rise in bond yield indicates a positive outlook on the economy. Because, people are selling bonds and placing their money elsewhere. Shouldn’t that mean that stocks should go up?
I also understand that higher yield means stocks would go down because of getting a safe yield from bond.
But doesn’t that contradict each other? On one hand we are optimistic of the economy. On the other hand stock goes down?
Could you help me out. Thanks
Leave a Reply