10 Year Against the SP and NASDAQ 100 Highlights Tech Stocks Outperformance

In a year where the 10-year U.S. Treasury Yield started at 0.93%, peaked at 1.74% in the middle of March, and closed at 1.33% as of September 13, 2021, the stock market and the bond market attempt to tell two different stories. A particular minutia of the stock market I was interested in was the Standard and Poors Global 100 and the NASDAQ 100, since both have a sample size of 100 of the most prominent companies by market capitalization, with a caveat- the NASDAQ-100 is skewed more towards Technology Stocks, almost 25 percentage points better. Interestingly, the interaction between the NASDAQ-100 and Standard and Poors Global 100 starting 2005 against a depressing 10-Year U.S. Treasury Yield helps understand just how much Technology Stocks have benefitted from a low “risk-free rate of return” environment.