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)


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