Rising Bond Yields: The Biggest Threat to Stocks?

During their recent episode, Taylor, Carlisle, and Jeff Weniger discussed Rising Bond Yields: The Biggest Threat to Stocks? Here’s an excerpt from the episode:

[Jeff] I mean, you know, it’s the problem with with many of those concepts is you try to inflate it all away. But we already have an inflation. Is quagmire the right word?
It’s an inflation. It’s problematic inflation. And I mean, you know, if you start thinking about transitory.

[Jake] Right. I thought it was transitory.

[Jeff] Yeah.

[Jake] Everything’s transitory. Yeah. In a cosmic sense.

Sure.

[Jeff] You know, what’s what’s not transitory is if you think about inflation, some of the prints we’ve had in the U.S. We’re just abruptly taking this away from France and Germany to now U.S. inflation dynamics. We can go back if you guys want. Did you guys see the prices paid inside the ISM manufacturing and non-manufacturing?
It’s one of those two was at like first quarter of twenty twenty one levels was in the high 70s. So one of them was like seventy eight. So just as everybody knows on these on these diffusion indexes, generally speaking, any line item in an ISM manufacturing diffusion index, um, any subcomponent, it usually is this stuff is like between forty five and fifty five because you’re asking a bunch of people a question and it hovers around the median like our prices that you’re paying going higher or not.

When you get stuff in like below 40 or above 60 in any of these series, you got to really pay attention. That’s basically for the viewer. And one of them, I think it might have been services prices pay was like a seventy eight.

And manufacturing, one of them was a seventy four. One was seventy eight. The other was seventy four.

It’s like, yikes. Yikes. I mean, I mean, yeah.