Heading towards 3% yield.

Problem for stocks? Not yet. Selling bonds is causing the yield to rise. Selling bonds means that the cash sits somewhere else, as cash, or is reinvested in another asset class. Bond bear markets last a long time. Yields need to peak before money transfers out of other assets back into bonds creating a new bond bull market. We are years away from that.

Will the cash head into the stock market? It might. Sure we’re in a little bit of a pull-back currently, but the market looks to be preparing for another move back to retest and possibly break the July highs.