ADP Wall Street Schooled as US Yields Reverse
The ADP Wall Street School of investing has been put to the test in recent weeks as US yields have reversed. The school, which is based on the idea that investors should buy stocks when yields are rising and sell when they are falling, has been thrown into disarray as yields have moved in the opposite direction of what it predicted.
The ADP Wall Street School of Investing
The ADP Wall Street School of investing is a strategy that has been around for decades. It is based on the idea that when yields are rising, investors should buy stocks, and when yields are falling, they should sell. The theory is that when yields are rising, investors are more likely to invest in stocks, as they are seen as a safer bet than bonds. Conversely, when yields are falling, investors are more likely to invest in bonds, as they are seen as a safer bet than stocks.
The school has been popular among investors for many years, as it has been seen as a reliable way to make money in the stock market. However, in recent weeks, the school has been put to the test as US yields have reversed.
US Yields Reverse
In recent weeks, US yields have reversed, with the 10-year Treasury yield falling from a high of 1.77% in June to a low of 1.44% in July. This has been a surprise to many investors, as the 10-year Treasury yield had been steadily rising since the start of the year.
The reversal in yields has thrown the ADP Wall Street School of investing into disarray, as it is based on the idea that investors should buy stocks when yields are rising and sell when they are falling. With yields now falling, investors are unsure of what to do.
The Impact of the Reversal
The reversal in yields has had a significant impact on the stock market. Many stocks have seen their prices fall as investors have become more cautious. This has been particularly true for stocks that are seen as more risky, such as technology and biotechnology stocks.
The reversal in yields has also had an impact on the bond market. Many investors have been selling their bonds, as they are seen as a safer bet than stocks in a falling yield environment. This has caused the prices of bonds to fall, as investors are less willing to buy them.
What Should Investors Do?
The reversal in yields has left many investors wondering what to do. Should they stick to the ADP Wall Street School of investing and buy stocks when yields are falling? Or should they switch to a different strategy, such as buying bonds when yields are falling?
The answer to this question depends on the individual investor. Some investors may decide to stick to the ADP Wall Street School of investing, while others may decide to switch to a different strategy. Ultimately, it is up to the individual investor to decide which strategy is best for them.
The Bottom Line
The ADP Wall Street School of investing has been put to the test in recent weeks as US yields have reversed. The school, which is based on the idea that investors should buy stocks when yields are rising and sell when they are falling, has been thrown into disarray as yields have moved in the opposite direction of what it predicted. Investors must now decide whether to stick to the school or switch to a different strategy. Ultimately, it is up to the individual investor to decide which strategy is best for them.