Bond yields and stock prices (cont'd)

I was right. The relationship between bonds and stocks remains valid. (See previous blogs on the detailed discussion and explanation).

I was right when I said that lower bond yields are followed by higher stock prices.

I was right when I noted that stocks, once they reach a bottom, continue to rise as long as bond yields keep declining.

What should you look for? The market will continue to move higher as long as bond yields remain close to current levels.

Rising bond yields will signal that risk is increasing. At that time we will rely on my trusted indicators to tell us when we should start reducing our exposure to stocks.

More on http://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977