What really happens to equities when interest rates go up

What really happens to equities when interest rates go up. There is currently no shortage of analysis suggesting that long-term bond yields are too low and accordingly higher rates are inevitable. Further to that, consensus thought is that higher bond yields must equal asset price volatility and a subsequent equity market sell-off. However, recent experiences are to the contrary. When the average long term bond yield of the ten main developed regions has moved up by more than 75 basis points, equity markets have generally rallied (see chart attached). Click the following link to read the full article: (VIEW LINK)


2 topics

The Livewire Equities feed brings you a range of insights that relate to Australian equities


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.