Introduction
The idea that interest rates directly affect stock prices is a commonly held belief among many investors. There are some that even go as far as to say that the only reason the stock market is up is because interest rates have been artificially kept low by the Fed. With this article, I’m going to apply some commonsense logic to interest rates and their true impact on stock values.
There are many generalities spouted regarding how interest rates affect stock prices. For example, many argue that there is an inverse relationship between interest rates