Friday, October 14, 2016

The Coming Financial Dislocation With Rising Interest Rates

Beware the interest rate reversal, says this asset manager

Smart investors know that a long-term approach focusing on the true fundamentals of businesses pays off. But in the short-term, sentiment and fund flows can cause dislocations in financial markets. The current low interest rate environment, for example, has caused higher-yielding stocks to trade at elevated levels relative to their historic valuations, primarily because investors are…

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