What do rising bond yields mean?

Bond yields are climbing, with the 10-year Treasury near 4.77%. Historically, higher yields hit stock valuations hard especially in a market trading at 22x forward earnings. Robust job growth (256k in December) fuels inflation fears, so the Fed may hold rates higher for longer, pressuring growth stocks. Meanwhile, financials and cyclicals might benefit. This trend spans global markets, presenting both risks and potential bargains.

While rising yields can tighten valuations, they might also spark corporate efficiency and sector rotation. I’m watching for undervalued areas that could outperform if the market resets. (Finance, small-mid cap stocks, industry or simple material company stocks)

What about you? Whats your strategy?