What drives the repricing in interest rates expectations is key for the market ...Middle East

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That's because earnings expectations improve and investors tolerate higher rates because they anticipate stronger performance. One recent example of that is the 2016-2018 period when the stock market rallied despite the increase in interest rates. That was when we had Trump's tax cuts and inflation wasn't a problem.

So, the context matters a lot. Rising rates aren't inherently bad for stocks. It depends on why they’re rising. Markets tend to embrace growth-driven rate increases but fear inflation-driven ones.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

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