bond market: The Relationship Between Stocks and Rates
- 06/10/14 12:57 AM
There is an obvious relationship between the movement of stocks and interest rates. When the economy is doing better, stocks should also improve. This same stronger economy increases inflationary pressures which causes interest rates to rise. In addition, when stocks are doing well, more investors put their money in the stock market as opposed to bonds. So, on days that stocks are doing well, interest rates are increasing which means that bonds are not doing so well. Seems simple, right? Look over the past five years and it is not so simple. For the past five years stocks have done … (0 comments)
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