SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Semi Equipment Analysis
SOXX 299.81+2.7%Dec 19 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Gottfried who wrote (29861)4/7/2006 12:55:40 PM
From: Return to Sender  Read Replies (2) of 95616
 
G, you are over simplifying. Rising interest rates are never good for the stock market. That does not mean that the stock market cannot rise in a higher interest rate environment. But whenever government bonds pay a higher guaranteed rate (without risk) compared to the unknown payoff offered by the stock market the stock market will see less potential dollars inflowing.

Now look again at the time period you described:

investorshub.com

The stock market did not become attractive until long bonds were paying more than 3 times higher than the 30 day T-Bill. Do not minimize the small inversion we had earlier this year or trivialize the rise in rates. That is a mistake. The FED may not be anywhere near done raising rates. It is the relative performance of bonds versus stocks, long term yields versus short term yields, risk versus guaranteed returns that are important. It is not the actual level of interest rates in my humble opinion.

RtS
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News