The rate trade is back in focus for stock investors

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A move in the Fed's projections for interest rate cuts could push Treasury yields to a concerning level for stock investors.

Focus expected to be on the "dot plot" for any clues to number, timing of any cuts this year) has risen roughly 25 basis points in the last 10 days alone. It's now hovering around 4.32%, just shy of levels Morgan Stanley chief investment officer Mike Wilson recently noted could be a critical level for stock investors.

Bank of America's March Global Fund Manager Survey released on Tuesday shows that 40% of managers expect lower bond yields, down from the 62% seen in December. This marks the lowestWilson noted that large caps have been less sensitive to rates recently. "Small caps are likely to show more rate sensitivity than large caps on a move higher in yields," he said.

BlackRock senior investment and portfolio solutions strategist Kristy Akullian told Yahoo Finance Live that some of the stock reaction one would expect from a move in Fed rate cut expectations has likely been "priced in." But areas outside of large cap stocks could still feel some pain. WASHINGTON DC, UNITED STATES - MARCH 6: Jerome Powell, Chairman of the U.S. Federal Reserve, makes a speech during the House Financial Services Committee hearing at the Rayburn House Office Building in Washington DC, United States on March 6, 2024. Down over 20% from all-time highs, BCE stock offers you a tasty dividend yield in 2024. But is the TSX dividend stock a good buy? The post Should You Buy BCE Stock for its 8.6% Dividend Yield? appeared first on The Motley Fool Canada.

 

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