Excerpt from Bloomberg quoting DataTrek co-founder Nick Colas:
…. “A look back at the 1970s and early ’80s inflationary period gives clues on the divergence. Nicholas Colas, co-founder of DataTrek Research, found that inflation ran at 159% during that period, while a home-prices index rose by the same amount. Yet the S&P 500 returned an aggregate 169%, showing that earnings can keep up with inflation even if macro growth slows, he said.
“As much as equity markets might not like it in the near term, seeing 10-year yields continue to rise would be a very healthy long-term signal about the state of the U.S. economy,” he said”….
Read the full article here on Bloomberg!