1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies

Kenneth Fisher: Surviving Rate Rises

June 04, 2006 | About:

Should you fear rising long-term interest rates? The ten-year Treasury, which started 2006 at a 4.4% yield to maturity, now hovers near 5.1%. As I have been arguing for a while, the bullish case for equities hangs to a large degree on the fact that corporate share purchases--in the form of either cash takeovers or stock buybacks--have the effect of boosting earnings per share of the company buying the shares. And this phenomenon, in turn, depends on the fact that long-term interest rates are low. A chronic upward trend in long rates would do a lot of damage to stock prices.

Read the complete column


Rating: 1.6/5 (8 votes)

Comments

Please leave your comment:


GuruFocus has detected 6 Warning Signs with Conagra Brands Inc $cag.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.

User Generated Screeners


bqdarlingMyPscore
toll24Hakan2
Raven94INDUSTRY1 (Med Devices)
Jire4Star, ROIC Up Tr, ROIC > WACC
Bogdan BednarskiCSROE 2017, ROIC 5Y . ROIC 10Y
Bogdan BednarskiCSROE 2017
yasarkhanP/B and P/E and MKT
wwygeraGuru Buying #3
utche96Piot>7,P/FCF,Rev
rael222210
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK