So what is worse...falling interest rates or falling stocks?
This from Barron's today:
The Dow has dropped 403.29 points, or 1.5%, to 25,884.15, while the S&P 500 has fallen 1.3% to 2880.01.
Hong Kong has been getting the blame for the decline, as protests there shut its airport, prompting concerns about a China intervention. “China is still in the epicenter of the turmoil, with the lingering trade tensions and the escalating protests in Hong Kong both weighing on risk assets globally,” writes Gorilla Trades strategist Ken Berman.
Still, we’d point you to the continued decline in U.S. Treasury yields. The 10-year yield has dropped 0.096 percentage point to 1.64%, while the 30-year bond has slipped 0.12 point to 2.13%. The 30-year is at its lowest level since 2016 and just 0.03 percentage point, or so, above its all-time low. “With an abundance of geopolitical risks which could drive yet another rally, there are a variety of forward tenors which are pushing inflection points and could indicate more durability to the repricing than might otherwise be anticipated,” BMO’s Ian Lyngen.