Investors have been rattled in recent days by rising bond yields. The yield on the 10-year Treasury note climbed above 3 percent on Thursday for the first time in four years, and the Dow Jones Industrial Average plunged more than 1,000 points. What’s behind the sell-off? Many analysts say the rise in bond yields is […]
Why Are High Bond Yields Bad For Stocks
There is a strong negative correlation between bond yields and stock prices. When bond yields are high, stock prices tend to decline, and when bond yields are low, stock prices tend to rise. One reason for this is that when bond yields are high, investors can earn a higher return by investing in bonds than […]
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Why Do Stocks Go Down When Bond Yields Rise
The stock market and the bond market often move in opposite directions. When bond yields rise, it can be a sign that the economy is doing well and that the Federal Reserve is likely to increase interest rates. This can lead to a sell-off in the stock market, as investors expect to earn less money […]
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How Do Rate Hikes Affect Stocks
How Do Rate Hikes Affect Stocks Almost every time the Federal Reserve (Fed) raises interest rates, there is some discussion about how it will affect the stock market. After all, equity prices are highly sensitive to interest rates. When the Fed raises rates, it is essentially saying that the economy is strong enough to withstand […]
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17 Min
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