History says high and rising interest rates don't spell doom for stocks 👍
The stock market usually goes up 📈
Generally speaking, rising interest rates are not welcome news for the economy and the stock market. They represent higher financing costs for businesses and consumers. All other things being equal, rising rates represent a hindrance to growth.
However, the world is complicated, and this narrative comes with a lot of nuance. More here, here, here, and here.
One big counterintuitive piece to this narrative is that historically, stocks have actually performed well during periods of rising interest rates.
