stockcorrection

Wall Street's main bull, Mike Wilson from Morgan Stanley, just dropped an urgent warning: the surge in the yield of 10-year US Treasuries above the critical level of 4.5% and the volatility in bonds are putting the overheated valuations of tech and AI giants at risk. Even though the bank is ramping up its long-term target for the S&P 500 to a crazy 8300 amid the strongest corporate profit growth in two decades, the correlation between stocks and yields has turned sharply negative again — the bond market is literally draining the life out of equities.

As Treasury yields storm to multi-year highs due to the Iranian conflict and sticky inflation, institutional players will favor risk-free coupons, forcing BTC and altcoins to go into deep defense alongside US indices.

​#MorganStanley #MikeWilson #StockCorrection #TreasuryYields #Macroeconomics