Stock prices and short-term interest rates

I reviewed again the historical relationship between the stock market and short-term interest rates.

Conclusions?

1. Investors have to be cautious following a cyclical bottom in short-term interest rates.

2. The markets is very likely to move higher following a decline of a few months in short-term interest rates.

I will show you the graphs from 1955 in the next issue of The Peter Dag Portfolio.

How do you use this information?

First of all you need to have an entry and exit strategy. Then, play the odds.

More on http://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977