Rising Yields—Why The Stock Market Is The Last Man Standing

So far the market reaction to this US monetary tightening cycle has been classic in the sense that the fringe areas have succumbed first, starting with cryptocurrencies and then moving into emerging markets and Asia. The obvious risk at this juncture, with the Fed still committed to tightening and with money markets still assuming 75bp more of rate hikes in this cycle, is that the American stock market looks increasingly like the “last man standing”.