am wrote: ↑Tue Sep 28, 2021 9:17 am
Don’t understand why it so worrisome that the 10 yr treasury moves from really low to a bit higher and we have a nasdaq and market sell off?
My guess is some active managers of large funds trying to market time.
From what I've picked up, higher rates are bad for Tech/growth, good for Value (esp energy and financials). I suspect many algorithms out there automatically reposition somewhat from growth to value when rates rise.
Also, higher rates are generically bad for profits, so as a whole, stocks are worth slightly less. I suspect this is built into the algorithms too.
In light of those two things, today kinda makes sense, with the market down, but growth taking it on the chin while value declines are relatively modest.
The value camp has seen some big gains this year, and so maybe the patience of value investors will pay off in the next few years, we'll see. Doesn't much matter to me as I've tried to ensure my accounts are roughly equally balanced between value and growth.