Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Here's Why Falling Interest Rates Could Be Bad For Stocks

ByChris Kimble
Published 03/01/2018, 02:18 PM
Updated 07/09/2023, 06:31 AM

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

2-, 5-, 10- And 30-Year Treasury Yields

When the tops of each falling channel were last touched in 2000 and 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.

Latest comments

Money moves from overpriced stocks to bonds, gold and safe haven currencies JPY!  And that's exactly what will happen.  We should see 2.5 on 10Y before 3.25, 3.5 and possibly up to 4%.  But way before that, watch out for yield inversion. 10-7 first, 10-2 next!
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.