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Money and Finances
Reply to "Treasury Bond Rates vs. Stock Market"
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[quote=Anonymous]Correlation is not causation. The increase in interest rates doesn’t cause the market to crash. Maybe the market judges that equities are too risky, bonds become more attractive and demand drives up interest rates. Or maybe some event occurs that makes stocks less attractive and bonds more attractive. Mr Market is irrational over the short term and you just have to hope you last long enough to get the theoretical benefits of an efficient market. [/quote]
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