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Jason Zweig looks at low interest rates and how this affects investment. Research co-authored by Professor Elroy Dimson, Chairman of the Newton Centre for Endowment Asset Management at Cambridge Judge, is featured in the article. The research found that “since 1913, US stocks have gained an annual average of 9.3 per cent when interest rates fall, but only 2.3 per cent in periods of rising rates. Bonds have returned an average of 3.6 per cent annually in periods of falling rates, but only 0.3 per cent when rates rise.” (subscription)

Read the full article [wsj.com]