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>cause a drop in the stock market, as more cautious investors (retirees, etc), enticed by increased yields, reduce their stock market exposure You've committed
by forgetsusername 11y ago
>cause a drop in the stock market, as more cautious investors (retirees, etc), enticed by increased yields, reduce their stock market exposure
You've committed a fallacy: the overall stock market exposure cannot be reduced because those more cautious investors, moving their dollars to treasuries, have to sell the stock to someone else.
- jazzyk 11y agoI said "THEIR market exposure". Please read carefully before you comment.
- forgetsusername 11y ago>"Please read carefully before you comment." I'm saying THEIR market exposure is irrelevant. It's one stock owner or another. The idea that "cautious" stock owners are going to dump shares at a loss to obtain a marginal increase in treasury rates is ludicrous. Maybe you should understand before you comment (and down vote).