“When rates are high, stocks will die, and when rates are low, stocks will grow.” I’ll never forget hearing this at a stock market seminar when I was around 12 years old. Taken to the symposium by my investor grandfather, this was my first actual exposure to stock market wisdom. These were the days of 17%-plus interest rates and some Fidelity mutual funds posting massive returns of over 25%! #-ad_banner-#If someone had predicted rates near zero less than a generation in the future, they would have been laughed out of the room. However, the impossible has now happened, with rates… Read More
“When rates are high, stocks will die, and when rates are low, stocks will grow.” I’ll never forget hearing this at a stock market seminar when I was around 12 years old. Taken to the symposium by my investor grandfather, this was my first actual exposure to stock market wisdom. These were the days of 17%-plus interest rates and some Fidelity mutual funds posting massive returns of over 25%! #-ad_banner-#If someone had predicted rates near zero less than a generation in the future, they would have been laughed out of the room. However, the impossible has now happened, with rates pushed to zero in a valiant effort to save the U.S. economy. Fast forward to the early part of 2018 and the low rates and massive quantitative easing measures have worked their magic, with the stock market making record high after record high. Now, with the economy potentially going into overdrive, the Fed has slowly started to bump up rates. Rates have begun to climb with up to four increases possible for this year. Will the old saying about stocks dying when rates climb pan out this year? Does the rate rise regime mean the bull market will soon be… Read More