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Interest rates determine the risk and reward perceptions of virtually all asset classes in the financial market. The benchmark for return is—and has always been—the United States ten-year treasury bond yield, so when bond yields are high, investors tend to avoid higher-risk assets like stocks, as the risk is not worth it compared to bond yields. Now that the Federal Reserve (the Fed) has lowered interest rates by the most since 2007, investors may think that lower returns could be ahead, especially now that the S&P 500 has priced in most—if not all—of the potential effects these interest rate …

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