Interest rates are surely going to rise; it isn't a matter of "if" anymore but merely a matter of "when."
Investors may believe that they want to exit the stock market in anticipation of rising interest rates, preferring to commit funds to the "safer" bond market. In more normal market conditions, that would be a prudent strategy.
Today, however, I believe that there is more risk in the bond markets than in the stock market.
The bond market is largely about mathematics. There is an inverse relationship between bond prices and interest rates.
When rates rise, bond prices fall. With rates at historical lows, there is only one direction for interest rates to trend and that is upward.
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Investors may believe that they want to exit the stock market in anticipation of rising interest rates, preferring to commit funds to the "safer" bond market. In more normal market conditions, that would be a prudent strategy.
Today, however, I believe that there is more risk in the bond markets than in the stock market.
The bond market is largely about mathematics. There is an inverse relationship between bond prices and interest rates.
When rates rise, bond prices fall. With rates at historical lows, there is only one direction for interest rates to trend and that is upward.
For More Information :Intraday Trading Tips, Intraday Stock Tips,F&O tips,Stock Future Tips, Intraday Tips ,Option Trading Tips,Stock Option Tips,Future & Option Tips,option tips
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