Interest rates and bond yields are moving to 15-year highs, as the Federal Reserve pulls out all the stops to fight rampant inflation. Rising rates and fear of recession have most stocks falling sharply. If interest rates continue to rise, stocks could see -- as they have in the past when interest rates move up -- continued pressure for some time to come. That's because of the relationship between bond yields and what investors are willing to pay for the risk of owning stocks.
In this video, Motley Fool contributor Jason Hall breaks down the connection between stocks and bond yields, and offers some ideas on how investors can protect themselves.
*Stock prices used were the afternoon prices of Sept. 28, 2022. The video was published on Sept. 29, 2022.
