Yulia Slavina

Sam Ro: 10-year yields may reach 5 percent before equity multiples fall

Sam Ro: 10-year yields may reach 5 percent before equity multiples fall
10-year yields could hit 5 percent

Sam Ro reports that during times of above-trend earnings per share growth, approximately 15 percent year-over-year, 10-year yields can rise to about 5 percent before equity multiples begin to decline.

He adds that the sustainability of earnings growth will remain the main focus for equity investors, according to JPM.

Sam Ro recently reported that Bloom Energy, Illumina and Everpure will be added to the S&P 500, while Molson Coors, Trade Desk and Builders FirstSource will be removed (link). In a prior article, Ro highlighted a surge in S&P 500 stocks with negative beta, pointing to an unusual risk profile in U.S. equities (link). These developments come as investors assess the outlook for earnings growth and interest rates.

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