How Contrarians Can Take Advantage Of Rising Interest Rates

The big news this week was not the 666-point decline on Friday. The big news was that interest rates have risen above long-term downward trend lines that have been in existence for decades. We are witnessing a once-in-a-generation change of trend for interest rates. Many investors usually dismiss initial changes of trends for an asset, especially ones that have been in existence for decades. The majority of investors have never experienced a period of rising rates. They have no idea it can occur and actually last.

I have attached pdf copies for the 10-year government yield charts of Japan, England, Germany and the United States. You will notice that we have only just recently risen above the long downward trend lines. This is the major news that is moving the markets. The worlds capital markets have been living on low-interest rates and the value of cash flows (stocks and bonds ) decline if cash flows stay fixed but rates rise.

Over the coming weeks , I will be preparing members of turnaround stock investing with strategies to take advantage of this change of trend in interest rates. Consider becoming a member of Turnaround Stock Investing