Any Rising Rate Fearing People: Last bull market rates rose from 4.5% to 6.5% and stocks +40%!
One thing that many people are missing: US companies have not been this lean in years. They have cleaned up their balance sheets by stock buy-backs, lean work force, ect... When growth does hit, which is right around the corner if the job market returns modestly, then stocks will experience a multiplier impact dropping right to the bottom line. Companies should experience growth 2x the typical over the past four years driving down P/E's to around 10-12 for the market making stocks undervalued.
Also as rates rise, bond prices fall, so we expect a rotation from bonds into stocks futher pushing the rally...The 10 year should be around 3.36% using Fibonacci