Rising share prices with rising interest rates – how is that possible?

Stock prices soaring

It is statistically proven that share prices fall when interest rates rise, according to Handelsblatt editor Ulf Sommer. However, the current market phase is only a limited surprise for him.

Dusseldorf Interest rates are rising, but stock prices are not falling, as feared. On the contrary, they increased on Thursday, as they had in the weeks and months before: since October, when the turnaround in interest rates had long been a reality, the Dax and Euro Stoxx 50 in Europe have each increased by 25 percent and the Dow Jones in the USA by 18 percent gone up.

But investors should, at least in the long term, be prepared for difficult times. Because the longer and more sustainably the central banks in Europe and the USA raise interest rates, the more clearly the conditions for the companies and thus also for their participation certificates, the shares, deteriorate.

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