Conclusion
Investors often look for periods of extreme moves as a signal that a reversal may be at hand, but history shows that extreme moves lower in Treasury yields may persist over the short term. Over the longer-term 6- to 12-month horizon, risk assets have a history of a relatively strong recovery following such a drop. Only time will tell how markets react going forward, but based on history, the coming months may be kinder to markets than the previous few have been.
Anthony Valeri is investment strategist for LPL Financial.