The 10-year treasury bond is a benchmark for investors and recently signals the end of Fed stimulus efforts. When bond yields rise tech stock prices fall because bonds are lower risk and tech stocks are expensive for their respective returns.
See also:
- This has the opposite effect of lowering the federal funds rate which causes all asset classes increase in value and makes riskier investments more attractive.
- The stock market boom during the pandemic is due to increased savings
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Cryptocurrency Is Not Immune to Market Conditions
The selloff and resulting crash in cryptocurrency prices on Jan 21, 2022, which wiped out over $1 trillion from the major coins, showed that cryptocurrency behaves like any other risky asset in the market. The plummet coincided with a stock market decline, nullifying the point that cryptocurrency is some sort of bastion from traditional markets.