Two weeks ago, Goldman trader and head of hedge fund sales, Tony Paquariello, tried to answer what may be the most important question in markets today: in a world where stocks had added $12 trillion in market cap (through the first week of April) since the October lows when do higher rates begin to bite?
This question is especially relevant considering the striking divergence in yields and risk assets which emerged at the beginning of 2024, when yields traded around 4%, and have since soared to 4.65%, while the S&P has surged as much as 500 points (before its modest retracement in the past week).
