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Stocks are down because speculators understand that the fed has two mandates: unemployment and price stability (inflation). With a strong jobs report coming ou
by scottiebarnes 3y ago
Stocks are down because speculators understand that the fed has two mandates: unemployment and price stability (inflation).
With a strong jobs report coming out, this gives the fed leeway to more aggressively attack inflation (via rate hikes).
When rates go up, capital typically flows into bonds and away from stocks, etc.
- achandlerwhite 3y agoWhat I find hard to understand is why if money is flowing into bonds then why are treasury yields up?
- scottiebarnes 3y agoI don't know much about bonds but my thought is that investors expecting rates to go up will withhold from purchasing currently issued bonds as future bond rates will yield better.