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The Stock Market and Rising Interest Rates

The Stock Market and Rising Interest Rates

How do rising interest rates affect the stock market? One of the reasons for the recent market correction was fear that rising interest rates would lead to inflation. In a strong economy, stocks generally rise while interest rates increase. The MarketWatch.com article, “Why Investors Shouldn’t Fear a Rising Rate Environment,” illustrates how and why stocks rise along with interest rates.

 

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