标题: Market interest rate vs. Equity price? [打印本页] 作者: dmar 时间: 2013-4-2 14:27 标题: Market interest rate vs. Equity price?
Would higher market interest rate = lower equity price? As we have to discount the cash flows back at higher a rate?作者: HuskyGrad2010 时间: 2013-4-2 14:29
It would lead to a lower justified equity price using the DDM, FCF, or RI models.作者: hassan 时间: 2013-4-2 14:29
Also consider the asset allocation part of the story… When interest rates are higher, fixed income securities may attract higher investor attention and steal some share of investments made in equities.
