Watch a 10-year yield of 1.75%, which will weigh on S&P valuations - Crisafulli

• The S&P 500 (NYSEARCA:SPY) +1% could withstand the 10-year Treasury yield rising up to 1.75% before price-to-earnings compression becomes more pronounced, Adam Crisafulli of Vital Knowledge Media says.
• "At the least, the multiple expansion process (whereby the SPX PE increased ~3 turns as yields collapsed during the pandemic) is very likely OVER," Wall Street veteran Crisafulli tweets.
• Long-term rates have been rising. The 10-year yield topped 1.4% earlier in the day. It's now up about 2 basis points to 1.39%.
• Real rates are also climbing, with the 10-year TIPS up to -0.8%.
• Among bond ETFs (NYSEARCA:TBT) +1.4%, (NASDAQ:TLT) -0.7%, (NYSEARCA:TIP) -0.1%, (NASDAQ:IEF) -0.2%, (NASDAQ:BND) -0.1%, (NASDAQ:VGLT) -0.8%
• Historically low nominal and real rates has been given as a justification for the high valuations in growth tech and megacap stocks.
• Institutional investors started to pare holdings of the biggest tech stocks in Q4.
• When the dot-com bubble burst, money flowed into financial and industrial stocks.