A combination of elevated oil prices and surging bond yields has derailed a broadening in the rally that was supposed to propel stocks to new records.
Bulls are confronting a harsh reality: adding major positioning isn’t worth it right now. The bond selloff is capping the appeal of equities, a strengthening dollar is hampering liquidity, and the threat of Iran war re-escalation has kept US benchmark crude oil prices around $90 a barrel. The deteriorating picture leaves investors, reluctant to cash out more than they have already, wondering what’s next.
