They say a picture is worth a thousand words. Well, anyone trying to make sense of this post-election rotation out of secular growth and fixed income and into cyclical and financial stocks can look no further than the 10-year bond in the U.S. While an argument can definitely be made that this has been a big move in a short period of time, I think it’s also worth appreciating the other side which is we are still at levels below 2014! Our advice has been and always will be to never look back to predict the future; understand the risks you are taking when making an investment decision; and don’t let the instrument dictate the risk profile (i.e. bonds = safe / stocks = risky) because that fails to take the price you are paying into account.
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