Do Rising Rates Mean Falling Stocks?

Do Rising Rates Mean Falling Stocks? by Brad McMillan, Commonwealth Financial Network Yesterday, I saw an interesting doom-and-gloom piece on rising rates, which claimed that rate increases typically sink the stock market and that we could potentially expect a crash in the near future. Theoretically, this isn’t crazy; higher rates should lead to lower stock prices. In practice, though, higher rates typically reflect a strengthening economy. The effect on stock prices is a battle between the tailwind of faster earnings growth from an improving economy and the headwind of higher rates. Only in the absence of the tailwind does the…