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Stocks increased more from 1985 to 2005 with higher rates than from 2005 to 2025. https://ofdollarsanddata.com/sp500-calculator/ https://ofdollarsanddata.com/s

• bluecalm 1y ago
  As they should as market values stocks as expected average (and time discounted) risk free rate + risk premium. This means stocks will return less in low rates environment unless there is a lot of additional growth.
  • hdgvhicv 1y ago
    That seems to contradict > Low interest rates make borrowing cheap, so companies flood money into real estate and stocks
• micromacrofoot 1y ago
  Stocks returned more from 1985–2005 than 2005–2025 because rates were falling, the economy was booming, and valuations had space for growth also https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States https://en.wikipedia.org/wiki/List_of_recessions_in_the_Unit...