Bloomberg Intelligence's 'Equity Market Minute' 1/13/2021

Gina Martin Adams from Bloomberg Intelligence discusses the relationship between rising bond yields and stock market trends. She presents scenarios forecasting equity market multiples based on bond yields, credit spreads, and earnings growth. The base case assumes low interest rates through 2021, with a steepening yield curve and improving earnings growth. The discussion highlights the correlation between bond yields and stock prices, noting that a breakdown in this correlation often signals market distress. The video concludes with a summary of these insights.

What is the significance of the S&P 500 PE multiples mentioned in the text?

What does a breakdown in the 52-week correlation between bond yields and stock prices indicate?