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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Steve Felix who wrote (24168)	1/5/2016 2:54:30 PM
From: JimisJim	2 Recommendations Recommended By Max Fletcher rnsmth Read Replies (2) \| Respond to of 34328

Did you see the "email interview" by SA with DVK? Here's a snippet of that I found interesting: "Here is why it is commonly thought that stock prices fall when interest rates rise: - Businesses and consumers reduce their spending, which causes earnings to drop and, therefore, stock prices fall. - The discount rates used to determine stocks' intrinsic values are higher, which causes intrinsic values to fall and stock prices follow. - Some investors abandon income stocks for fixed income investments with improving yields. All of these make sense theoretically, but the historical data of what happens when interest rates have risen indicates that the effect seems to depend on what level rates rise from. The tipping point seems to be at about 5%. If rates on the 10-year Treasury are rising but below 5%, stocks historically have risen too. When rates have risen beyond 5%, further increases historically have been correlated with lower stock market returns." The rest of the interview is here: seekingalpha.com -- worth a read for all divvy-oriented people.