Why Stocks Can Cope with Higher Rates
Stocks are down dramatically so far this month, and major index-tracking ETFs such as the S&P 500 SPDR (SPY) and SPDR Dow Jones Industrial Average (DIA) dipped into correction territory, traditionally defined as a decline of 10% or more from the recent highs. The culprit is the recent spike in interest rates. Ten-year US Treasuries have risen…