10 year treasury yields are back over 1.3%

A) That is still shockingly low.

B) If you’re not a frog in gently boiling water, it is worrying.

C) But it’s higher than it was. 1.3% isn’t nothing, and the S&P is paying about 1.48% in dividends. In capital maintenance mode, the yields are close to being even.

So, is there an alternative to equities?

For most equity market participants, probably not. A little slosh might shift over to equities, but probably not enough to really move the needle yet. Not with the only driver being a mild rise in yields from shockling lower to shockingly low, and that’s probably overstating the movement. But it’s not nothing.

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