Conventional wisdom holds that interest rates tend to move in the same direction as stocks. This makes logical sense from a classical investment portfolio standpoint. If investors are selling stocks to buy bonds, the prices of stocks would fall and the price of bonds would rise. When bond prices rise, rates fall. But even with today's heavy losses in stocks, mortgage rates barely budged today. The reality is that the "conventional wisdom" is far from bulletproof, even though there are lots of past examples that support it unequivocally. Beyond that, bonds are their own animal. If they have str...
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