How will the rise of interest rates may affect the markets

I like to “visualize” what may happen in the future so that I can be better prepared to respond if a similar situation occur in the future. Some call it “forecasting”, or “speculation”, but I like to call it visualizing. Please take my words with a great dose of salt!

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Why stock investors should not panic when interest rates rise

While I agree never to fight the Fed, I disagree that rising interest rates will cause a recession/crash. In fact, rising interest rates has always been good for stocks. It means that the economy is growing strongly, and the Fed wants to cool the economy.

It does mean the start of the end though. But do we know when the end is?

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Why bond investors should not panic when interest rates rise

Bonds have been under pressure lately because of possible 4 times interest rate hikes because of inflation. Everyone is looking at the 10Y US Treasuries yield which currently stands at 2.87. Many analysts are saying the same thing, but I shall quote Schroders in a recent SIAS report, “based on our models, US equity valuations are sustainable as long as US 10Y yields does not go above 3%”. Yet, when I look back in Dec 2013, the US 10Y yield stood at 3.03%. Now what happened back in 2013 to 2014? It was then a great bull run for US stocks!

I should not be too cocky. It is not what I think that is important, but what most people are thinking.

Anyway found this post : https://www.marketwatch.com/story/why-investors-shouldnt-panic-over-falling-bond-prices-2018-02-13

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