SPY News: High rates haven't always been a problem for stocks - 18th Apr 2024, 6:00pm

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Rising bond yields have been a key catalyst for stock drawdowns over the past year. But higher rates haven't always been bad for stocks.

In an analysis going back to 1990, BMO Capital Markets chief investment strategist Brian Belski found the S&P 500 (^GSPC) delivered an average annual return of 7.7% in months when the 10-year Treasury yield was less than 4%, compared to an average annual return of 14.5% in months when the 10-year was 6% or higher.

Stocks also performed better when rates were ...

>>> Read more: High rates haven't always been a problem for stocks
 
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