Treasury yields PULL BACK from historic highs

• S&P 500 and Nasdaq Composite have achieved numerous record closes this year, driven by AI and productivity gains.
• Rising Treasury yields are seen as a normalization in a growth economy, with real interest rates indicating economic strength and competition for capital.
• UBS expects bond yields to go 'a little higher before lower' and anticipates Fed rate cuts next year, making both equities and bonds investable.
• The long-term outlook for the economy and stock market is bullish, with more record highs expected due to sustained growth and investor confidence.

The discussion highlights the stock market's record-breaking performance, attributing it to AI and productivity gains. Rising Treasury yields are viewed as a sign of a booming economy and normalizing rates, not a cause for alarm. Both equities and bonds are considered investable, with expectations for bond yields to moderate and the stock market to continue its upward trend.