Correlation between stock price and interest rate
The Relation Between Stock & Bonds When the Interest Rate Declines By: Patrick Gleeson, Ph. D., When interest rates fall, bond and stock prices rise, but the correlation is weak. The most obvious distortion of a “rule” is in the relationship between stocks and bonds. Conventional wisdom has it that when stock prices go up, bond prices go down. when interest rates I spent about 2 months trying to answer this question when I was a global strategist over at JP Morgan. My wife was sick and tired of me talking about this topic. I was obsessed with it. I would agree with Ben Y. Zhao that the relationship is comp