Good Response Q: My tech/ growth portfolio is getting massacred today on the spike in 10yr yields again. Should I be holding or dumping some stock to raise cash?
The decline is a replay of what happened in February, when 10-year Treasuries actually were higher than today. In a stronger economy rates rise. This is nothing new. Stocks can still perform, as they have in other cycles. It is a bad day, but we think the market will adjust to the new reality soon enough. The recession is over, earnings remain strong, pandemic stimulus is likely over, and there are 11M jobs open, which is why rates are going up. Investors who panicked in February regretted it. The market could decline 5% to 10%, but we would say this on any day. The key here is timeframe, quality companies and patience. Expensive stocks with no revenue in hot sectors are likely the most vulnerable here, and it may be a good time to examine the quality of one's holdings if nerves are getting in the way of long-term positioning. Keep in mind it has been a loooong time since a really bad day or week, and investors are just not used to seeing so much red.
Another viewpoint from 5iResearch. GLTA