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Description: How much of a rise in yields would it take to upend the bull market in stocks? Maybe not as much as investors think. Strategists at Société Générale say if longer-term yields begin to recover, asset valuations could look particularly steep once the risk-free rate, usually the 10-year Treasury yield TMUBMUSD10Y, -1.58% rose.

Source: MarketWatch.com

Date: Nov 22, 2017

Link: https://www.marketwatch.com/story/stock-market-could-tumble-15-if-10-year-treasury-yield-crosses-this-line-2017-11-22

Questions for discussion:

  • What is the basis of the prediction and warning of a correction?
  • What do you think of this model and thinking?

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