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No white flag just yet

24 October 2022

After posting its third consecutive quarter of declines, the stock market has managed to stay slightly positive so far in October—despite bond yields continuing to climb. Both Canadian and U.S. 10-year bond yields posted new highs this past week with U.S. 10-years rising to 4.25%. With yields rising at a frenzied pace, market volatility continues to be a grisly backdrop for both the stock and bond market.

Bad news for the bond market is rarely a good sign for stocks. Although we saw a fresh low on October 13, a so-far so-good earnings season has eased some of the fear, with some arguing that we’re nearing a point of capitulation. In this Market Ethos, we examine fund flows to see if they confirm any signs of a market bottom.