- Bond pessimism is turning around, and that could mean a stock rally is coming, Ned Davis Research said.
- Yields are turning lower and stock prices are climbing, while the Israel-Hamas conflict continues overseas.
- NDR said equity investors have started to respond to signs of a yield retreat and growing evidence for a soft landing.
Stocks could soon see a fresh rally as investors' pessimism on bonds appears to be changing course, according to Ned Davis Research.
In a Wednesday note, strategists led by Tim Hayes, the chief global investment strategist at NDR, said falling bond yields are a positive sign for equities, and that the market currently reflects less equity pessimism than bond pessimism.