2 Source: Bloomberg, L.P. From 5/23/05 to 5/22/15, statistical analysis indicates that a 1% rise in the the 10-year Treasury yield = 0.348% increase in the BKX Index.
3 Source: Bloomberg, L.P. From 5/23/05 to 5/22/15, statistical analysis indicates that a 1% rise in the 10-year Treasury yield = 0.223% increase in the price ratio of the BKX Index to the S&P 500 Index.
Important information
Technical analysis is an investment methodology that analyzes stocks based on historical market activity such as price movements. Followers of technical analysis seek to identify patterns that they believe may be indicative of future activity.
The Taylor Rule is a monetary policy rule that models the equilibrium level for the fed funds rate (the rate at which banks lend balances to each other overnight), given inflation and employment objectives.
The KBW Bank Index is a float-adjusted, modified-market-capitalization-weighted index that seeks to reflect the performance of companies that do business as banks or thrifts that are publicly traded in the US.