Ivan Martchev

We have gone back into the pattern of seeing corrections last only one or two days, as sharp as they may be, with investors rotating into the broad market as the tech sector gets extended, despite remaining very strong, with no sign of abating, notes Ivan Martchev, investment strategist at E Navellier & Associates.

By themselves, Treasury yields spiking out of control can cause a recession, and October delivered both a 5% yield on 10-year Treasury bonds and 8% fixed-rate mortgages. We have gotten into a situation where the avalanche of Treasury issuance is overwhelming investors. But with all this negative backdrop, the Treasury market is showing signs of exhaustion, counsels Ivan Martchev, investment strategist at Navellier & Associates.

Many investors are wondering if the correction in the US stock market is over. Simply put, we don’t know. It can be over if we get a lot of good news on the economy – and if there are no negative developments on the geopolitical front (a big unknown), and if long-term US interest rates drift lower from their recently-elevated levels. But that’s a lot of “ifs”, writes Ivan Martchev, investment strategist at Navellier & Associates.

We are flirting with new highs on the 10-year Treasury yield for 2023. Unlike 2022, the stock market – and the tech sector in particular – had been ignoring creeping bond yields of late, but it has started to notice, explains Ivan Martchev, investment strategist at Navellier & Associates.