From a technical perspective, if rates rise over ~2.5% there’s an air pocket back to major resistance at 3%. The ride from 2.5% to 3%+ could be very bumpy for stocks and bonds. Trajectory matters. Stock investors own a massive position in “equity bond proxies”. Low vol and dividend-focused ETF’s could struggle in this environment.
This article was written by Dustin Blodgett, Head of National Sales at Accuvest Global Advisors, a participant in the ETF Strategist Channel.
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