Dear Investor, Don’t Worry About The Recent Moves Higher In The Ten Year

Add MKM Partners Chief Economist & Market Strategist Michael Darda to the increasingly long list of analysts who are looking for the US Federal Reserve to start a balance sheet diet in September. Oh, and about those recent moves higher in the US Ten Year Note, don’t worry, dear investor. There is a relative value analysis at play as rising interest rates could continue.

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Rising interest rates impact stock market valuations, but this time it could be different

The traditional analysis regarding the relationship between stock valuations and interest rates is accurate.

“Yes, it is true that all else equal, rising discount rates will pressure stock valuations, especially those in richly priced rate...