- Equities struggle generally when yields are rising AND forward earnings per share (EPS) expectations are falling.
- The latter is probably starting to happen now.
- Great chart from Oxford Economics.

![](https://cdn.commonstock.com/e78a97e3df1fe84cba7ca3339048afbd3b5b21faa8166e7fbc6c32ce928f8538-815x734.png)

Bonds are starting to become an attractive investment compared to stocks. As long as interest rates grow, investors will want to buy more bonds because they can get higher safe returns. That's my explanation for why equities struggle amid higher bond yields.

Dissecting the Markets

Equities and Bond Yields

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