US Stocks vs US Bonds, which one is more accurate?
This week, U.S. stocks and U.S. bonds significantly decoupled, with U.S. stocks ultimately rebounding and closing higher (blue line), while U.S. bonds plummeted (the red line represents the 30-year U.S. Treasury yield, which moves inversely to price) — especially since China began retaliating against Trump's tariff attacks. Will the tariff war escalate or ease in the future? The stock and bond markets have clearly made different judgments; is the optimistic U.S. stock market more correct, or is the pessimistic U.S. bond market more correct?
This week, U.S. stocks and U.S. Treasuries significantly decoupled, with U.S. stocks ultimately rebounding and closing higher (blue line), while U.S. Treasuries plummeted (the red line represents the 30-year U.S. Treasury yield, which moves inversely to price) — especially since China began retaliating against Trump's tariff attacks.
Will the trade war escalate or slow down in the future? The stock and bond markets have clearly made different judgments. Is the optimistic U.S. stock market more correct, or is the pessimistic U.S. bond market more correct?
