Wow—times change and reactions to interest rate movements change. I used to always say that it was not necessarily the direction of interest rates that mattered to common and preferred stocks (and baby bonds), but instead was the speed of movement. Well we are seeing a different story this week.
The 10 year treasury has moved higher by 20-25 basis points to 2.75% in 3 days–a pretty big move–common stocks are flying and income issues are mostly just yawning (up and down a few cents). All of this based upon Chinese trade–I am tired of this issue–let’s get done so we can maybe make decisions based on market fundamentals–not rumors.