Course work in macroeconomics

Long-term interest rates and stock prices.

Changes in long-term interest rates usually also affect stock prices, as many do

individuals hold some shares directly or indirectly (through a mutual fund or part of a pension plan), a change in the price of shares affects for personal wealth. For example, if it is longer interest rates fall, then investors may decide to buy shares,

thereby offering stock prices. It can also lead to lower interest rates investors expect the economy to be strong and profitable will be higher in the future and this expectation may be added even more demand for shares.