Nuveen's Doll: Rising Bond Yields May Cause Problems For Equities
Nuveen Asset Management's Bob Doll published his weekly commentary today, and sees a couple of warning signs for the world's equities markets.
Firstly, he thinks that, given "equity market sentiment is heating up while valuations are rising", investors "should be assessing their risk tolerances in preparation for more volatility".
Doll seems more concerned about the fundamentals of the fixed income market and the potential affect on equities. "The combination of rising yields and climbing inflation is probably the most serious potential issue for stocks" he writes, however "it would not be until rising yields signal an inflation problem or begin to drag on economic activity that we would expect they would actually hurt stock prices."