Hey folks, I wanted to take a second to remind everyone of the reward-to-risk we see in the equity market.

Looking at a basic chart of the S&P 500, you’ll quickly notice that it hasn’t done anything in two years. And it’s remained flat since February of this year.

In fact, I wouldn’t be surprised if the S&P 500 is trading even lower by the time you read this.

But why is this important? Because it has to do with the reward-to-risk potential for investors trading on the long side.

And given where interest rates are right now, things are not looking good for the bulls…

In today’s 3-minute video, I explain what happens to the equity market when rates are higher, why the reward-to-risk ratio is getting worse and why investors should shy from being bullish for the time being. 

I release these weekly tips every Thursday for free, so stay tuned and stay subscribed here.