As stocks sell off again, chart analyst sees buy signal in bond market (via TradingNation)
Investors rushed to safe haven bonds, pushing yields lower, and eschewed stocks as worries over the coronavirus outbreak spiked. The 10-year Treasury note is seeing such a bid that the yield, which moves inversely to price, neared a record low
"The safety trade has become so stretched to the upside that it's really the expensiveness of bonds and safety that I think should provide a floor for the stock market," Wald said Monday on CNBC's ""In particular, the difference between the S&P earnings yield and the 10-year U.S. Treasury yield, we're at levels similar to November 2016, December 2018, May 2019. And so for these reasons, I think it's made stocks relatively attractive," Wald added.
"Folks are just running out of equities and buying bonds at all costs and I don't think that's the smart thing to be doing here," Tatro said during the same segment. "We've been waiting patiently for a pullback. The market has been overbought for a long time."
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