Why Major Stock Indices Don’t Care About Rates
4 Articles
4 Articles
Stock markets are becoming increasingly competitive with bonds and their rising returns. However, stock markets benefit from a different effect.
Why Major Stock Indices Don’t Care About Rates
One of the questions plaguing investors in recent weeks is why major stock indices have been able to rally to new highs even as interest rates reach levels that have not been seen for decades. Yesterday, a concise answer to that question occurred to me during a conversation with a reporter.
The Stockholm Stock Exchange continued to rise on Tuesday morning and at lunchtime the index was still clearly green. The sentiment defies global interest rates, which have climbed to multi-year highs recently. Among the winners in Stockholm was Addtech, while Saab went in the opposite direction.
Despite great concern in the interest rate markets, record levels are holding on to the Stockholm Stock Exchange, which rose sharply on Tuesday. Several analysts point out the reason why historical patterns do not apply this time - and why the stock market ups can continue.
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