1.Interest Rates influence stocks prices because they affect corporate profitability , alter valuation relationships, and influence margin Transactions.
2.Interest rates have led stocks prices at major turning points in virtually every recorded business cycle.
3.It is the ROC of interest Rates, rather that their actual level, that affects equity prices.
4.Short-Term interest rates generally have a greater influence on stocks prices that longer-Term rates.
5.Changes in the Discount rate offer strong confirmation that a primary-trend change in money-market prices has taken place.
6.Reversals in the Trend of the discount rate offer early-bird warnings of a change in the primary trend of stock prices.
7.Intermarket relationships can be used to forecast or identify primary-trend reversal in bond prices and yields.
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