Image Source: PixabayI recently joined the great Stuart Varney on Fox Business to discuss bond yields, the election, the Fed, the market outlook, misconceptions about the “Trump Trade,” and a lot more. Here are a few things to keep in mind about the iShares 20+ Year Treasury Bond ETF (TLT) and stocks.Money is moving out of bonds. The last time we saw this abrupt of a move (two standard deviations) out of bonds in one month was 2001-2003. That preceded some of the biggest moves in history for US small caps and emerging markets equities.
Meanwhile, I told Stuart we have a tale of two cities in markets. Indices look a bit stretched in the short term, but many individual companies look like bargains. Markets SEEM to be pricing in “pro-business” policies coming to the White House (i.e. a Trump win). And if so, these newer themes will persist:
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