Stocks traded lower today as the dollar strengthened against some key currencies, and real yields rose. The TIPS curve is within 15 bps of having the entire curve above 2%. The 10-year TIP currently represents the lowest real yield on the curve at 1.85%. It seems hard to imagine that this won't affect stock valuations if the trend continues.
© 2024 Mott Capital Management, LLC / Michael J. Kramer
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