WITH THE 10-YEAR YIELD FLIRTING WITH THE DANGER ZONE OF 4.5%-5.0%, THE FED MODEL IS ONCE AGAIN “ACTIVE.” WE ARE NOWHERE NEAR THE EXTREMES REACHED IN 1987 AND 1999, BUT WITH STOCKS AND BONDS NOW POSIT

WITH THE 10-YEAR YIELD FLIRTING WITH THE DANGER ZONE OF 4.5%-5.0%, THE FED MODEL IS ONCE AGAIN “ACTIVE.” WE ARE NOWHERE NEAR THE EXTREMES REACHED IN 1987 AND 1999, BUT WITH STOCKS AND BONDS NOW POSITIVELY CORRELATED AND WITH THE RISK-FREE OFFERING THE SAME YIELD AS EQUITIES, THIS IS A LEFT TAIL RISK THAT WILL PROBABLY BE WITH US FOR A WHILE. — VIA @TIMMERFIDELITY

10-year yield near 4.5%-5.0% danger zone activates Fed model with stocks and bonds positively correlated.