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المشهد العربي
US stocks contend with rising bond yields
U.S. stocks are facing challenges due to the rise in the 10-year Treasury bond yields to over 5%, a level not seen since 1969. This has led to a decline in their attractiveness compared to fixed-income instruments. The share of stocks in investors' portfolios has reached 72%, the highest in over fifty years, while earnings outlooks project an annual growth of approximately 7% for the S&P 500 index—roughly equivalent to the current risk-free rate. Investors are beginning to reduce their investments in risky assets amidst a climate that shows a preference for bonds with a suggested allocation of between 60% stocks and 40% bonds.
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