Sunday, September 11, 2016

Stocks Sink With Bonds, Dollar Rallies as Complacency Broken - Bloomberg

Stocks Sink With Bonds, Dollar Rallies as Complacency Broken - Bloomberg



This is an outstanding article that explains why bonds and stocks both fell together on Friday.  Usually they move opposite of each other.  However, when the Federal Reserve is getting ready to raise interest rates, bonds will fall along with stocks.  This also happens when a recession is about to begin.  If a bear market arrives because of rising interest rates, government bonds will eventually reverse to the upside since people will ultimately seek the safest asset.


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