Interest Rates and Stock Returns by Marck C. Snead
ARTICLE SYNOPSIS ...INTERMARKET ANALYSIS Interest Rates And Stock Returns by Mark C. Snead
Stocks perform best when interest rates are declining, but rate levels can make a difference. Here's how.
Interest rates can be a dependable component of a stock market forecasting model. Many models use changes in interest rates, in which falling interest rates are considered to be more favorable for stock prices than rising rates are. Many of these applications have weathered the rigors of lengthy real-time testing and are among the favorite tools of market forecasters.
Often overlooked in the relationship between i...