Don’t dump yield stocks in this bond correction. The sharp global bond correction we have been warning about for over a year has suddenly eventuated. But there is now a danger that investors overreact and dump quality, high-yield stocks. We believe the sharp rise in bond yields, while uncomfortable, is just a much-needed correction, rather than a signal of a fundamental change in the world’s economic outlook. Therefore, we don’t think it requires a major shift in strategy; and nor should investors dump high-quality equities in response. And we don’t think investors should listen to hedge fund managers who are merely front running asset rotation. (VIEW LINK)