real-time news and commentary for investors
Friday, Mar 16
2012, 10:21 AM
Taking its signal from rising bond yields, HSBC suggests cyclicals will outperform as higher...
Taking its signal from rising bond yields, HSBC suggests cyclicals will outperform as higher rates are a sign nominal demand is rising. The main casualties: healthcare and consumer staples. As for being a threat to the entire market, HSBC believes this is only true at real yields above 4% (they're negative now), but "a sharp rise in bond yields is a threat from whatever level."