Long-Term Treasury Yields Are Surging. History Says That Might Actually Be Good News for Stocks.
Rising interest rates haven't historically been that bad for stock prices.
Overview
Earlier this month, the 10-year Treasury yield crossed the 5% level for the first time since October 2023. The 30-year Treasury yield just hit its highest mark in 19 years.
Conventional wisdom says that rising interest rates are bad for stocks. They make bonds more competitive with equities, increase borrowing costs for businesses and consumers, and reduce the present value of future corporate earnings.
Details
History, however, tells a surprisingly different story.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.