“It’s been so long since interest rates had a real ‘up’ cycle that Wall Street — and many average investors — have forgotten what that even looks like. Four toxic interest-rate assumptions have the potential to kill your portfolio: First, Wall Street thinks the Federal Reserve can control all interest rates with a few words or the wave of a monetary wand. Second, Wall Street thinks that when interest rates go up, it’s always a slow and gentle climb. Third, Wall Street thinks that rising interest rates are solely a consequence of an improving economy and nothing else. And fourth, Wall Street thinks that because of that, the impact will be benign.”

http://www.moneyandmarkets.com/four-false-assumptions-that-can-kill-your-portfolio-53007

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