Part 2/8:
To better comprehend the fluctuations within the stock market, it is vital to explore the bond market concurrently. Traditionally, stocks and bonds form the core components of most investors' portfolios, leading to adjustments based on which asset class is viewed as more appealing at any given moment. Recently, the bond market has experienced significant shifts, particularly with the yield on the 10-year Treasury note rising sharply from 3.6% in September to 4.6% now. This spike, a remarkable 25% increase in just 100 trading sessions, poses a considerable influence on stocks, especially as investors may shift capital toward the now more attractive fixed-income investments offered by U.S. Treasury bonds.