GYC Insights
Articles on real-life financial issues written to educate and enlighten.
Predicting Interest Rates
At the beginning of the year, many advocated for the holding of bonds over equities due to interest rate predictions. During this short period, stocks have opened up a +10% gap from bonds.
Do Changes in Interest Rates Affect Stocks?
Despite what multiple news sources suggests, more than half a century of data have not found a discernible relationship between bond yields and stock returns. It would be wise not to make changes based on short-term speculation.
Making Sense of Interest Rates
Many investors worry that the present market environment of rising interest rates will decrease equity valuations and therefore lead to relatively poor equity market performance over the next year or more. From a theoretical perspective, how do these rate hikes affect the market?
Will The Taper Tamper With Investments?
The last time tapering occurred in 2013, markets wobbled for a while, and bonds - the most badly affected of all asset classes - suffered a significant loss over a short period of time. The event was then dubbed the “Taper Tantrum”. With a fresh round of tapering looming on the horizon, how worried should we be of our investments?