How rising bond yields affect the share market
Donald Trump’s plans for tax cuts and infrastructure spending has created a massive sell off in bonds. This has caused bond yields to rise (bond yield rise when bond prices drop). When bond yields start to rise it means the market is factoring a rise in interest rates. Previously the record low interest rates have persuaded investors to invest in the share market. The record low interest rates have made stock valuations look very attractive. When an analyst evaluates a …