FINANCIAL ICEBERG
Always consider hidden risks
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 IShares 20+ Treasury Bond Fund TLT ( Red / Right Scale )
SP500 Index ( Black Line / Left Scale )​
IShares SP US Preferred Stocks PFF ( Red / Right Scale )
SP500 Index ( Black Line / Left Scale )​
SP500 Utilities Sector SPU ( Red / Right Scale )
SP500 Index ( Black Line / Left Scale )​
iShares Real Estate IYR ( Red / Right Scale )
SP500 Index ( Black Line / Left Scale )​
SP500 Financials Sector SPF ( Red / Right Scale )
SP500 Index ( Black Line / Left Scale )​
SP500 Banks Index BIX ( Red / Right Scale )
SP500 Index ( Black Line / Left Scale )​
SP500 Homebuilding Sector SPF ( Red / Right Scale )
SP500 Index ( Black Line / Left Scale )​
And the next shoe to drop are Financials and Banks...
SP500 and Interest Rates: IR Sensitive Sectors Already Under Pressure ?
Jan 6 ( From Stockcharts )
​​The big difference between 1994 and today is the quantity of debt and the leverage in the system. So even a smaller change of interest rates compare to 1994 can have dire consequences; Bond markets have started to price that but not stocks...

​​We will go through different sector/product that are recognized as interest rates sensitve.

​​Usually, when those sector start to be under pressure, the whole market tend to make a huge correction. So the charts below will compare each product/sector to the Mighty SP500. ( SPX in the charts below showed in Black Line )...

Observe the major price divergence in each case...
In recent weeks, interest rates have moved significantly higher since the fear of the Federal Reserve to start their tapering process. On June 19, the Market's Worst Nightmare was confirmed by Bernanke:

​"If the incoming data are broadly consistent with this forecast, the Committee currently anticipates that it would be appropriate to moderate the monthly pace of purchases later this year; and if the subsequent data remain broadly aligned with our current expectations for the economy, we would continue to reduce the pace of purchases in measured steps through the first half of next year, ending purchases around midyear."

Since then, the real fear was a 1994 kind of scenario ​​that provoked a dramatic change in market sentiment and destabilised bond markets. This surprised most observers including the Fed. Even if in September the Fed pushed further don the road the tapering process, Interest Rates Sensitive Sectors or Investments have already turn sour...
IShares iBoxx Corporate Investment Bond Fund LQD ( Red / Right Scale )
SP500 Index ( Black Line / Left Scale )​
US Treasury bond price 30 yr maturity USB ( Red / Right Scale )
SP500 Index ( Black Line / Left Scale )​
Conclusion

The stock market is quite complacent vis-a-vis interest rate risks​​; the big difference between 1994 and today is the quantity of debt and the leverage in the system. So even a smaller change of interest rates compare to 1994 can have dire consequences...

In that kind of environment, volatility will increase and be felt sooner than later in the stock market... Especially banks are vulnerable to that kind of financial pressure...​​
SP500 and Interest Rates: IR Sensitive Sectors Already Under Pressure ?   $SPY, $SPX, $ES_F, $TLT, $USB, $PFF, $LQD