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Interest Rates and Stocks: It's Complicated

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Deflation fears and sluggish growth have flipped the correlation between stock prices and bond yields from negative to positive. But sharp spikes in bond yields have remained bearish for stocks, and plunges in yields have remained bullish. The recent drop in bond yields is bullish for stocks, but if it persists, it would signal rising recession risks.

Ned Davis Research | Equities | U.S. Focus | Weekly

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