Bond selloff 'unambiguously bad for all assets' -CIO

STORY: "Since the ECB (European Central Bank) came out with their very hawkish policy, and the BOJ (Bank of Japan) raised their target for ten-year from twenty-five basis points to fifty, the global bond market's been selling off. And a lot of investors think, 'oh it's bad for tech stocks,' but it's unambiguously bad for, really, all assets," Hatfield told Reuters.

Wall Street was pulled lower by losses in growth and healthcare shares on the final trading day of a tough year, which was marked by aggressive interest-rate hikes to curb inflation, the Russia-Ukraine war and recession fears.

The three main indexes are set for their first annual drop after three straight years of gains as an era of loose monetary policy came to an end following the fastest pace of rate hikes by the Federal Reserve since the 1980s.

Growth stocks have been under pressure from rising yields for much of 2022 and have underperformed their economically-linked value peers in a reversal of a trend that has lasted for much of the past decade.

The S&P 500 growth index .IGX is down about 30.5% this year, while the value index .IVX has fallen just 7.7%, with investors preferring high dividend-yielding sectors with steady earnings such as energy.