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 major event could cause a reversion to a lower yield scenario according to the speaker?

How does the speaker characterize the current state of the bond market?