Part 5/11:
The historical context shines a light on critical issues, namely rising interest rates and fiscal policy. The period from 1982 to 2000 enjoyed a secular bull market coinciding with falling interest rates, differing starkly from the current climate. The implications of rising interest rates lead to distinct vulnerabilities in perception, but historical data reveals that stock markets can exhibit solid performance despite prevailing interest rate increases—in some instances leading to considerable gains.