Morgan Stanley identifies next wave of AI-linked "alpha"
What do the three largest declines in the S&P 500 since 2007 have in common? It has nothing to do with a low VIX! Nor does it have to do with extreme bullish sentiment.
Any thoughts what might tie these declines together?
The top chart is the yield on the 10-year note (inverted). By inverting the series, you get a sense of what Bonds looked like over the past 10-years. This chart reflects that the inverted yield is on support line (1). Each of the three different times the yield has hit support line (1), the S&P 500 has declined: Two 15% declines (2010 and 2011) and a much larger decline in 2007.
At (2) in the chart above, yields are back at this key line. So what happens next?
We're now facing a situation that hasn't happened in three years -- one that has led to large moves in the bond market/interest rate complex.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.
Which stock should you buy in your very next trade?
AI computing powers are changing the stock market. Investing.com's ProPicks AI includes 6 winning stock portfolios chosen by our advanced AI. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. Which stock will be the next to soar?
Unlock ProPicks AI