It’s been a busy month for me with work; hence, I didn’t have time to do any research on any stocks. So to keep this blog alive, I will just share my thoughts on the current Nasdaq performance and its relation to the bond yield.

The bond yield has been creeping up since July 2020 and sending its 20-year yield to an all-time high of 2.27% (as of 26 Mar). As interest rates are inversely proportional to bond prices, rises in interest rates mean lower yield bonds will drop in price to match current interest rates. Usually, sell downs in bonds signify expectations of economic recovery and inflationary pressure.

Economic recovery should be a boon to the stock market, and that is evident with Dow Jones Industrial Average hitting an unprecedented high; however, the opposite is true for technology stocks in Nasdaq.

Many analysts reason that this is due to a rotation out of high growth technology stocks