It's no coincidence that investors are getting more positive on the stock market as the yield curve has been steepening.
Bank of America Merrill Lynch's quantitative team has new research that shows a direct relation between the move in stock prices and the yield curve, and some sectors, like energy, financials and materials, are far more correlated than others. A steepening yield curve is a positive sign for growth and those sectors are closely linked to cyclical performance of the economy.
The yield curve steepens when interest rates on longer duration bonds are higher than on the shorter duration, and the spread between them is getting wider. That is the opposite of what happened when the curve inverted in the spring and summer. The BofA strategists measure stocks against a number of macro factors, and of all of them, the yield curve has become most correlated.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Laurel Griggs, Broadway Actress on 'Once', Dies at 13The young star was best known for her role as Ivanka in the Tony Award-winning musical 'ONCE.' She performed in the production for 17 months between 2013 and 2015.
Read more »
Laurel Griggs Dies: Broadway Actress Who Played Ivanka In ‘Once’ Was 13Teenage actress Laurel Griggs, who made her Broadway debut at age 6 next to Scarlett Johansson and appeared on Saturday Night Live, has died, according to reports and an online obituary. She was 13…
Read more »
This Drugstore Facial Cleanser Is Sold Once Every Four SecondsThere's a good chance you already have a bottle of this $9 micellar water in your bathroom.
Read more »
AFM Flashback: Santa Monica Once Held a Competitor to the GlobesJournalists in the Hollywood Foreign Correspondent Association formed their own organization called the Foreign Press Association of Hollywood, in which they then launched a competing awards show, the World Film Favorite Festival.
Read more »
Laurel Griggs, Broadway Actress in 'Once,' Dies at 13The young star was best known for her role as Ivanka in the Tony Award-winning musical. She performed in the production for 17 months between 2013 and 2015.
Read more »
How an actor who once played young 'Forrest Gump' ended up serving in IraqMichael Conner Humphreys is an Iraq War veteran, but he is perhaps better known for playing a child named Forrest Gump in the 1994 film of the same name.
Read more »