As we all know it, most of the money is going into the largest stocks and especially tech related sectors.
But all types of equities have profited.
In such a context, Treasuries are sold, investors expecting higher rates.
Based on the current 10Y rates and expected companies earnings for September, the current S&P500 prices provide a lower yield compared to AAA bonds. This tells us how overvalued this market is in terms of yield expectation.
Conclusions:
I am not fighting against such a strong parabolic move, but I continue selling calls against my long positions.
I have also started buying defensive stocks that usually do well at the end of high rates cycles.
