“Stocks Can’t Ignore the Issue Any Longer”

“Stocks can’t ignore the issue any longer.” What is the issue stocks can no longer ignore? And why can they no longer ignore it? Answers shortly. First we look in on stocks themselves — the stocks that can ignore the issue no longer.

The Dow Jones absorbed a 330-point lacing today. The S&P 500, a 31-point blow. The Nasdaq Composite, meantime, went 183 points backward.

Why? CNBC informs us that: Stocks closed lower Thursday, as Salesforce logged its worst day in around two decades. Traders also looked ahead to the release of key U.S.

inflation data. We will simply accept CNBC’s account. Yet to reraise our central question: What is the issue stocks can no longer ignore? The Issue Stocks Can No Longer Ignore The answer is the 10-year Treasury note.

The 10-year Treasury note yielded 3.92% at year’s onset. Today the 10-year Treasury note yields 4.

55% — a 63-basis point leap. Jim Rickards labels such a bond yield effervescence an “earthquake.” And the seismometers on Wall Street are reporting tectonic activity.

Bloomberg’s Jan-Patrick Barnert: While stocks were mostly ignoring a rise in bond yields since mid-May it seems that...

stocks can’t ignore the issue any longer. Adds Bloomberg: “Higher yields are starting to hit stocks.” An Economy Built on theSan Andreas Fault For years the stock market and the economy rose upon a San Andreas Fault of artificially low interest rates.

Artificially low rates have kept the $100 trillion edifice of public and private .