Bond Bull’s U.S. Stock Rampage Triggers Call for Defense: Chart

What's Driving U.S. Yield Lower?

“The bond bull has infiltrated the stock market” so thoroughly that U.S. investors ought to defend themselves against a reversal, James W. Paulsen, chief investment strategist at Wells Capital Management Inc., wrote in a July 13 report. Paulsen referred to the total return on the S&P 500 Dividend Aristocrats Index, consisting of companies that have raised payouts for at least 25 years in a row, relative to the S&P 500. The ratio between these indexes rose to a record on July 5 as the 10-year Treasury note’s yield neared an all-time low.