That is a pretty important question for equity investors given that we have had a great run in the stock market: Will bonds have provided investors with a pittance of a yield?
Bill Gross is the "bond king" and was on CNBC to discuss exactly this. Gross thinks dropping bond prices (rising yields) likely would negatively influence stocks because rising interest rates would hurt the housing market and economy.
According to Gross the high interest rates of the early '80s were an anomaly created by the need to kill inflation. Likewise, interest rates today are an anomaly as they are created by massive easing around the world.
Eventually, Gross thinks we will go back to a more normal interest rate environment somewhere between those two extremes.