The Pendulum Economy

Why the market's continual swings are good news

If you're worried about your investments because interest rates seem to be moving higher, get over it. Ordinarily, the prospect is worth fretting about. Rising rates can take the steam out of corporate profits, the stock market and the whole economy. But the rate jitters that surfaced last week are actually good news. They represent just the latest swing in a highly emotional market that for three years has thrived on alternating fears about which way the economy would grow: too fast or too slow. As long as the pendulum doesn't swing too far in one direction, your nest egg is...

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