AdvertisementRecession fears have eased, boosting investor confidence in the stock market. Rising Treasury yields and drying liquidity could hurt stocks with valuations high. Recession fears have largely dissipated since this summer, bolstering investor confidence in a roaring stock market. Edwards said rising yields will eventually put a damper on the stock market, especially with valuations continuing to climb. Alternatively, sharply rising bond yields can cause problems to equities in a high PE environment – such as now," Edwards said.

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Persons: Albert Edwards, Edwards, It's, it's, Marcus Ashworth Organizations: Treasury, Generale, Societe Generale, Bloomberg