Citadel Securities: Rising risk of capital flow reversal requires more tactical caution

Supported by strong earnings, share buybacks from listed companies, and significant purchases by retail investors, the S&P 500 Index has risen about 16% from its March lows. However, Rubner stated that despite fundamentals remaining strong, signs of a bubble are increasing, and bond yields are also rising. Rubner wrote: "The current pattern now requires more tactical caution. Many of the capital flows driving this rally now seem noticeably more mature. Higher long-term interest rates are beginning to compete with equities once again."