Weekly Market Commentary 1/12/2018

Another week and another leg up in an astonishing bull market that is three months away from its ninth anniversary. This week’s rally in stock prices was particularly impressive because it occurred despite the appearance of a long-feared headwind: higher bond yields. As the week drew to a close, the 10-year Treasury yield rose to a ten-month high of 2.55%, up about 25 basis points since mid-December and not far below the highest level – 2.64% – since the spring of 2014. Low bond yields, of course, has been one of the key catalysts driving stock prices higher, prompting investors to seek riskier assets to bolster returns.