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4 answers

Yes there is a loose correlation. When interest rates go up overall, the stock markets tend to go down. When interest rates go down, the stock markets tend to go up. The DOW measures the stock markets and the 30 yr motgage rate tends to go up and down with overall interest rates so there is a loose correlation.

The probable reason for this is that people choose whether to invest in stocks or interest rate products. If interest rates go up, some people will pull their money out of stocks and buy various products returning set interest. If interest rates go down some people will move the other way (cycling out of bonds and other interest bearing products and into stocks).

Best luck.

2007-07-12 16:46:35 · answer #1 · answered by Slumlord 7 · 0 1

None whatsoever. If the stock market tanks, which is a possibility, the general property market may tank right along with it.

There are millions of people in the market that really don't understand it. It is a recipe for disaster, eventually.

Just like offering 100% home financing to those that had no business buying houses, there are tons of people invested in the stock market that are going to get burned. Maybe not soon, but eventually.

2007-07-12 20:01:30 · answer #2 · answered by CommonCents 4 · 0 0

DOW and 30 yr ? . . Nope . . .
Between the prime rate / bond rates / T bills & the 30 yr . . . yes . . .

2007-07-12 19:48:04 · answer #3 · answered by kate 7 · 0 0

Why not do the statistics and invest yourself. If you let everybody in on your strategy it becomes useless.

2007-07-12 19:45:48 · answer #4 · answered by Anonymous · 0 2

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