If “higher for longer” becomes firmly priced in, I’d watch Treasuries most closely. Long yields near 5% affect almost everything else: equity valuations, borrowing costs, the dollar and even gold’s opportunity cost.
Stocks can still rally if earnings and AI growth remain strong, as we saw after the September hike. But persistently high long-term yields would keep pressure on expensive growth stocks.
So for me: watch the bond market first, then see how equities react.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
