Analysis – Goodbye, TINA: Rising yields dim outlook for troubled U.S. stocks

“In difficult times, there’s been a lot of stimulus that has helped the firm,” said James Ragan, director of wealth management research at the firm DA Davidson. When the time comes, the low interest rate environment has driven pretty high valuations. “We’re definitely going to resize now. ” Of course, alternatives to stocks are far from risk-free. Bonds, whose price is inversely proportional to yield, have experienced brutal 166, with ICE (NYSE: 500ICE) The Bank of America U.S. Treasury Index is on track for its worst annual performance on record. Many investors believe that bond prices are unlikely to stabilize until there is evidence of lower inflation and a turning point in Fed tightening.

Meanwhile, investors with cash may be late to the stock market’s eventual turnaround. Still, strong yields could continue to challenge stocks, investors said. The Trusted Trust has increased its recommended cash distribution across most of its portfolio to % from 2% at the beginning of the year, said Hans Olsen, chief investment officer at Fiduciary. “There are things you can do right now that you can actually get reasonable money to wait for,” Olson said. “I think it’s important. We haven’t seen anything like this in a while and the market is going to have to reprice.” 2020