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The Anglo Disease - Financiers worried about end of great bull run | 42 comments (42 topical, editorial, 0 hidden)
Re: Okay, okay... (none / 0)
This quotation from the diary
Describing the interest rates set by the bond market as the "cornerstone" for valuing equities and other securities, [Albert Edwards, Dresdner Kleinwort's well-known global equity strategist] cautions that if the bond market has truly entered a new era of steadily rising long-term rates, "all investment portfolios will be shredded to ribbons".
might be clarified by this other quotation from the beginning of the FT piece:
US Treasury bond yields in effect set the "risk-free" rate used when pricing securities - from corporate credit through derivative contracts to equities - across the world. They form the financial world's clearest expression of risk.
Does this answer "how the bond market affects the stock market"?

Can the last politician to go out the revolving door please turn the lights off?
by Carrie (migeru at eurotrib dot com) on Tue Jun 19th, 2007 at 12:15:54 PM EST
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The Anglo Disease - Financiers worried about end of great bull run | 42 comments (42 topical, 0 editorial, 0 hidden)
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