Bridgeway

What Happens to Stocks When Bond Yields Go Up?

by Andrew Berkin, PhD, Director of Research

What Happens to Stocks When Bond Yields Go Up?

As the spring of 2014 winds down, we have just marked the fifth anniversary of the current bull market in equities off the lows of the financial crisis. Many investors are wondering how long this rally can continue. One cause of concern commonly expressed is that interest rates might increase, resulting in a stock market decline.