The Traderszone Network

Published in TZ Latest News 17 July, 2016 by The TZ Newswire Staff

Morgan Stanley: “To Make Up For A 10% Drop In The S&P, Treasury Yields Would Need To Go… Negative”

With both the S&P500 and Treasury prices hitting record highs as recently as one week ago, many have been confused (perhaps none more so than Goldman’s clients as we reported yesterday), although the conventional fallback explanation that has again emerged, is a reversion back to the “Fed Model” according to which the lower yields go, the highest equity multiples should (and may) rise.

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