Why Falling Interest Rates Could Be Bad For Stocks

Below looks at 2, 5, 10 & 30-year yields over the past 30-years. Yields remain inside of respective 25-year falling channels. Rallies over the past couple of years has each testing the top of these falling channels.

When the tops of each falling channel were last touched in 2000 & 2007, yields declined and so did stocks.

Many have been concerned about rising rates. Should stock bulls now be concerned about rates falling at each (1)?

If they use these channels as guides, they should be!

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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