This post was originally published on this site.The surging run higher in bond yields has definitely gotten markets buzzing this past week. In that lieu, one of the more common market themes is that higher bond yields tend to be bad for stocks. In recent days, that certainly looks to be true. When Treasury yields pushed up earlier this week, with 10-year yields hitting 4.81% (the highest since October 2023), equities came under pressure with both growth and tech shares buckling lower. Typically, markets have come to know that higher Treasury yields tend to create a tougher environment for equities. But...

This post was originally published on this site.FUNDAMENTAL OVERVIEW   The Nasdaq is currently trading at the same levels we’ve seen in May. The index has been pretty much rangebound with high volatility for four months. The two main reasons for such underperformance are Fed tightening risks and the US-Iran war, as they both negative drivers for future growth. The problem is that these negative factors happened when positioning was heavily lopsided. In fact, tech stocks, especially semiconductors, were the most crowded trades on record. As macro conditions changed, we’ve started to see deleveraging across the board. The latest push...