Bond Yields Hit 5%: What It Means for Your Stocks

Rising bond yields make stocks riskier, but Wall Street analysts say the bull market will survive. When bond yields climb, borrowing costs rise for companies and consumers. Higher yields also pull money away from stocks, because bonds now pay more for less risk. This makes stock prices shakier. Still, analysts do not expect the bull market to end. They point to strong corporate earnings and a healthy economy as support for stocks. So which stocks should investors buy? Analysts favor companies with strong cash flow and low debt. These businesses can handle higher borrowing costs better than most.