RMRM - What Do Rising Interest Rates Imply For Stocks REITs And Gold?

• Let's begin by looking at the recent trend in the 10-year rate. The rise to 1.15% yesterday (Jan. 11) marks the highest level since last March.
• Although REIT returns and the 10-year yield are closely connected at times, overall the relationship reflects a correlation of about 0.10.
• Although gold is influenced by interest rates, the economic and financial context matters, perhaps a lot.
• The analysis above suggests caution in assuming that a rising 10-year Treasury yield is a strong factor for predicting near-term returns in stock, REITs and gold.

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