Wells Fargo’s Gina Martin Adams Predicts Major Pullback for Stocks
Adams said stocks tend to follow rates over time. The move from 1.6% to 2.7% in the 10-year Treasury is a potential tremendous shock over the next six months, Adam stated.
A 100 basis point increase in rates implies a 10 percent pullback in stocks, Adams explained.
Adams said the entire increase in the S&P this year has come from an increase in the earnings multiple and not strong earnings.