Higher Yields Are a Headwind, Not a Stop Sign

Rising yields don't automatically kill risk assets. The key is *why* yields are climbing.

If rates are up due to strong economic growth, equities can often handle it. Higher growth can offset higher borrowing costs. This is different from rates rising solely because of inflation fears.

We need to monitor economic data and central bank commentary. This will tell us the driver behind yield movements. The market's reaction will depend on which factor is dominating.