GYC Insights
Articles on real-life financial issues written to educate and enlighten.
How Do Higher Interest Rates Affect You?
Higher interest rates means a higher cost of borrowing for both you and companies, but it also means better opportunities to grow your savings through instruments like T-bills and our Capital Holding account
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?
Are Rising Rates a Slap in the Face to Bond Performance?
When the US Federal Reserve committed to raise interest rates in the face of rising inflation, investors and financial media like Bloomberg, Morningstar, and Yahoo Finance were quick to predict that bonds will underperform cash. Looking at over 30 years of International Government Bond data, we examine the validity of these forecasts.
The Impact of Rising Rates on Markets
We can’t dispute that rising costs and inflation are at our doorstep; we could however, argue against the claim that a doomsday outcome on stocks is certain whenever interest rates rise. Let’s see what the data has to say.