Ashworth: Bonds on Natural Journey to Higher Yields

The video discusses the current state of the market, focusing on mispricing and potential bubbles in growth stocks, particularly expensive defensive stocks. It highlights the expectation of higher yields leading to value stocks outperforming. The discussion shifts to U.S. Treasury yields, predicting an increase to around 3% by year-end. The video also covers the ongoing rotation from bonds to stocks, suggesting a steady trend rather than a 'great rotation.' The bond market is expected to see a significant yield increase unless a major global shock occurs.

What is the potential impact on value stocks if yields rise?

• Value stocks will remain stable.

• Value stocks will decline sharply.

• Value stocks may underperform.

• Value stocks may outperform.

What is the predicted level for U.S. Treasury yields by the end of the year?

• 3%

• 4%

• 2%

• 1%

What is the expected trend regarding the rotation from bonds to stocks?

• It will decrease slightly.

• It will reverse completely.

• It will continue steadily.

• It will stop immediately.

What could cause a significant change in the expected increase in bond yields?

• A major global shock.

• A decrease in stock prices.

• An increase in inflation.

• A change in government policy.

What is the natural direction for bond yields according to the discussion?

• Lower yields

• Stable yields

• Higher yields

• Fluctuating yields