Generally speaking, rising interest rates are a bearish indicator for stocks, however in this case two things come to mind that makes me think this is an exception. For one, rising interest rates means (smart) money will be coming out of bonds. Where are they going to put that money now? In a money market fund earning 4%? I dont think so. Why be scared of the market? Heck, the nasdaq was 4700, 4 years ago! Talk about a buying opportunity!
Second, thought rates may be rising, its still awefully cheap for business to borrow money right now with rates as low as they are. Maybe, the rising rates will make them think, if they're ever going to invest (leverage money) in their business, now's the time to do it before it becomes too expensive to borrow a few years down the road. If rates were already, say 9%, and rising, then we might have a different story, but we dont.
I think your indicator will be proven wrong at least in the short term (1 year).
I'm currently 40%C, 40%S, 20%I.



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