Vix, MMTH, and Junk bond yields trade along stocks to add color to this movie.
SP500 stocks are businesses with earnings yields that grow over time, but stock dont trade alone in a vacuum.
Investors can choose to get in, get out, sell puts, buy bonds, or stain short term money market assets.
if we look back at history, we can also compare what different risk on risk of times felt like and remind ourselves what times of thin yields feel like and what times of high perceived risk feel like.
Feel free to comment and add to the conversation so we all learn together. cheers!