2020 brought us an unprecedented bull run in equities. But with lofty valuations and bond yields that have gradually crept up recently, will this rally continue or falter if interest rates go up?
During this months FOMC the Fed stated that it sees stronger economy & higher inflation, but no rate hikes. There are signs the market is more comfortable with the 10-year yield, howwever, we are not out of the woods yet.
Some are concerned that the market is in the first stage of a crash. While further downside is not off the table, we feel that it's more likely the result of profit-taking combined uncertain retail traders adding to volatility.