Investors have always been interested in the relationship between interest rates and stock prices. The conventional wisdom is that when interest rates fall, stock prices go up. And when interest rates rise, stock prices go down. There are a number of reasons for this relationship. The most basic reason is that when interest rates fall, […]
Bond Etf When Interest Rates Fall
When interest rates fall, bond prices tend to go up. This is because the lower interest rates make the bonds less desirable to investors, who then sell their current holdings and buy bonds that offer a higher yield. This can be seen in the graph below, which shows the performance of the S&P 500 Bond […]
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