Bonds & Stocks

Check out the accompanying pdf and chart collection. Executive Summary: Fitch’s downgrade of US debt on August 1 was triggering for both the bond and stock markets. Bond yields since have soared, while S&P 500 companies’ collective valuation has staggered. Today, we examine the underlying issues that have kept yields elevated and the question of whether they’ve now risen high enough to attract sufficient demand to clear supply. … And: Joe shares stats on the MegaCap-8’s valuation declines since the end of July. Notwithstanding their valuation hits, these eight stocks now represent a slightly bigger slice of the S&P 500’s market cap, at a record-high 27.4%, than they did in July.