CHART OF THE DAY: A 110-Year Look At Bond Yields Shows Why We're At The Start Of A Huge New Bull Market

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A provocative chart here from BofA/ML takes a look at US equities and bond yields 1900.

The gist is this: US equities have had several periods of sideways action (as seen in the red boxes) that ended when bond yields made a major turn in a different direction.

Right now, there’s some belief that bond yields are on the upswing — signaling a direction turn again — and if that’s true, then history suggests we break out of the red box sideways action in equities and head for a big rally in stocks.

chart of the day, equity prices and bond yields since 1900, march 2011

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