Bond Yields vs Stock Valuations

Today we saw an enormous rally in the 10yr bringing yields close to 2.4% which means bond valuations went down.  The continuation of disappointing economic numbers should push the Fed off from increasing rates.  There are many on Wall Street that feel the market should be trading at a premium simply based on the low risk free rate of the US treasury.  Granite Group believes that higher rates do not work well with equity markets that trade at a premium valuation.

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