The Worst Bond Selloff Since 2007 Gave A Message About The U.S. Stock Market

Multiplo Invest 3.4K Followers Follow Summary Global bond yields surged to multi-year highs, reflecting growing concern over U.S. fiscal deterioration, deficits and rising debt. Despite these fiscal risks, the S&P 500 remained near record highs as corporate earnings and profit margins continue to strengthen. Earnings growth is broad-based, with margins expanding across sectors, while the S&P 500’s PEG ratio remains historically attractive. The author sees equities as a safe haven amid bond-market stress and maintains an 8,000-point year-end target for the S&P 500, supported by strong earnings. Douglas Rissing/iStock via Getty Images Investment Thesis This article is part of my macroeconomic weekly series , started two years ago. The global bond market suffered a huge sell-off in the last few days, but the S&P 500 remained stable near its This article was written by Multiplo Invest 3.4K Followers Follow More than 7 years of experience in equity analysis in LatAm. We provide our clients with in-depth research and insights to help them make informed investment decisions. Analyst’s Disclosure: I/we have a beneficial long position in the shares of SPY, VOO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.