At first glance
At first glance, it certainly looks like a case of good economics suddenly turning into bad economics, so let's dig a little deeper.The box standard explanation and a more exact one Every single attempt to explain the recent change in investor sentiment that I have come across argues along the same lines. Yes, economic fundamentals are rather good at present and, yes, those fundamentals are driving interest rates modestly higher, but there is a limit as to how much of a rise in interest rates equity investors are prepared to tolerate.Allow me to ask a very simple question then: Was it really the recent rise in interest rates that started the sell off? If it was, why didn't the first 40 basis points matter? Why only the last 15 basis points (Exhibit 2)?Exhibit 2: US bond yields vs. US equitiesThe more I read about it and the more I speak to other investors, the clearer the picture becomes. iPhone Cases But three areas where a DSLR camera is unbeatable are the speed, particular...