Well, that didn’t take long did it!?
It seems like yesterday I wrote about the 10 Year U.S. Treasury Note hitting what seemed like a rock bottom yield of 1.27% but, low and behold, this morning it is sitting a a real-time quote of 0.713%, which is up from yesterdays 0.380%! Never seen nothing like this before, the swiftness of such big moves.
And regarding the stock markets– because remember, there are many, not just one monolithic “stock market”- well, that also was a swift kick in the pants! Intra-day circuit breakers kicked in for the first time since 1997! These circuit breakers were put in place due to the crash of 1987, which I experienced and still remember.
I won’t bore you with stuff you can read about anywhere and everywhere else, but I will try to highlight items that hopefully add-value, items to try and help you make sense of things, even when they seem to be, or actually are, nonsensical.
So here’s something to put things in perspective, as it relates to the 10 Year U.S. Treasury Note, which we will call the benchmark “risk-free rate of return”. Strategas (see link below and full disclosure I have no idea who they are, just saw this via the WSJ Daily Shot) provided the below chart noting the “% of S&P 500 Stocks with Dividend Yields Greater than the 10-Year U.S. Treasury Yield”.
What do you see? It’s sort of like fine art, beauty is in the eye of the beholder, right? I’ll just leave it at that, because there’s a lot in that chart to digest, beyond the obvious. But I do want to emphasize their note, “From last week (emphasis mine)… this will be higher today”.
Next, the VIX…
Thanks for reading and have a good day!