As the 10-Year Treasury Yield reaches 2.6% and Fed minutes point to a far more aggressive stance by many central bank governors, $TNX presents a critical inflection point on a multi-decade basis. Going back to 1981, the steady downward sloping trendline has presented resistance over and over again. From a long-term perspective, the rapid rise in interest rates off the 2020 pandemic lows appears to be simply a reversion to the mean. We will know soon whether the Go trend will break through to new highs – alerting investors of all stripes to the permanence of our new inflationary regime.
On this week's edition of the GoNoGo Charts show, Alex Cole and Tyler Wood discuss the viewpoint of US Equities, as well as the recent trade opportunities presented by this bifurcated market. Advances last week in Consumer discretionary, cannabis and retailers may have been short-lived, whereas REITs present an interesting inflation hedge as well as attractive dividend yields.
This video was originally recorded on April 7, 2022. Click this link to watch on YouTube. You can also view new episodes - and be notified as soon as they're published - using the StockCharts on demand website, StockChartsTV.com, or its corresponding apps on Roku, Fire TV, Chromecast, iOS, Android and more!
New episodes of GoNoGo Charts air on Thursdays at 3:30pm ET on StockCharts TV.
