HSBC's Kettner Says Stock Rally Can Cope With Rising Bond Yields HSBC strategist Stuart Kettner has sparked debate in recent weeks with his assertion that the stock market rally can continue even as bond yields rise.
This may seem counterintuitive, given that higher interest rates are often seen as a threat to equities.
However, Kettner's argument is based on the idea that investors have become accustomed to low returns from bonds and will continue to pursue higher yielding assets, even if it means accepting lower stock prices.