In recent posts on rising bond yields and a bull/bear eye test, we noted rising bond yields are typically associated with bull markets and an improving economic outlook. From time to time, it is helpful to hear the message from other sources. From MarketWatch:
How big of a headwind do high rates really represent? According to equity analysts, not big at all. In fact, they may even be a positive. Despite the recent turbulence, historically, “equities have gained significantly in periods of rising rates,” wrote Jodie Gunzberg, managing director and head of U.S. equities at S&P Dow Jones Indices, in an email. “Since 1971, the S&P 500 has gained about 20% on average in rising rate periods, has gained 8 of 9 times and has gained nearly 40% twice, with less than a 4% loss for its worst rising rate period.” Gunzberg’s analysis evaluated the benchmark U.S. index on a total-return basis.
"I want everybody to sit back, relax and let's look at this history," Acampora told CNBC's "Futures Now" on Tuesday. He picked out a chart that he says proves the case.