Every 0.1% Increase In The Discount Rate Equates To a 4% Decline In Stocks

Source: https://www.zerohedge.com/markets/every-01-increase-discount-rate-equates-4-decline-stocks
Published: Sep 10, 2021
Author: Tyler Durden
Post Date: 2021-09-10 17:40:40 by Horse
Views: 76

"Interest rate risk is at a record high, with S&P 500 equity duration equivalent to a 36-year zero-coupon bond – every 10bp increase in the discount rate equates to a 4% decline, all else equal. And valuations (more below) leave no margin for error."

Poster Comment:

SEE CHART.

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