Another important thing to keep in mind is that as yields go up stocks also go through a repricing, not just bonds. The interest rate is the measuring tape for

Another important thing to keep in mind is that as yields go up stocks also go through a repricing, not just bonds. The interest rate is the measuring tape for all investments, if you can get a safe high return in bonds you don't go into stocks. If dividend yields are lower than bond yields you don't buy dividend stocks that are subject to other risks... EDIT: And while we're talking about this it helps to recall that there's a continuum that goes beyond 100% stocks. If you're so sure interest rates are going up and stocks are going up then you can borrow money at today's rates and invest it in stocks. I.e. use leverage. If you're right your returns will be much higher...