The stock market is a tried and tested way to build wealth at the tradeoff of volatility and risk. There are multiple ways to manage both but with SVB’s collapse serving as a cautionary tale, we believe in employing evidence-based protocols.

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?

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.