Shake it Off

Published on April 22, 2024 by Premium

The equity markets appear to be frightened by the sudden rise in interest rates, but even a 5% 10 year yield does not necessarily preclude an on-going rally. Common frameworks that link the level of interest rates with equities such as the equity risk premium sound reasonable, but have not been useful in practice. A brief glance through history and across the world shows that high equity prices can coincide with high interest rates, which […]

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