Volatility – Bond Proxies and Long-End Treasuries Bond proxies are less attached to Fed policy. This chart shows that the implied volatility of bond proxies is disconnected from long-end Treasuries. Image: Arbor Research & Trading LLC
Equity Market Driven by Bonds Not Profits The chart shows a widening gap between cyclicals and bond proxies. It is clearly a cyclical bear market within a bull market, as during the dotcom bubble. Image: Societe Generale Cross Asset Research
Tech Stocks – S&P 500 Information Technology Index and 10-Year U.S. Treasury Yield – 200-Day Correlation How much should tech stocks trade like bond proxies? Can high concentration in tech stocks increase market fragility? Image: Morgan Stanley Wealth Management