Long-Term Treasury Yields Are Surging. History Says That Might Actually Be Good News for Stocks.

Earlier this month, the 10-year Treasury yield crossed the 5% level for the first time since October 2023. The 30-year Treasury yield just hit its highest mark in 19 years.

Conventional wisdom says that rising interest rates are bad for stocks. They make bonds more competitive with equities, increase borrowing costs for businesses and consumers, and reduce the present value of future corporate earnings.

History, however, tells a surprisingly different story.

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