Lauren Hua

Why is the US stock market going up when bond yields are rising?

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The U.S. stock market can rise while bond yields are rising because higher yields are only one part of the equation. Higher Treasury yields normally put pressure on stocks because they increase the discount rate investors use to value future profits. But if investors believe corporate earnings will grow quickly enough, stocks can still rise even while yields move higher. The market is essentially saying that strong earnings growth, particularly from large technology and AI-related companies, is currently more important …

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How Interest Rate Rises Affect the Average Person

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Interest rate rises affect ordinary people because they change the cost of borrowing money and the reward for saving money. When a central bank raises its interest rate, the effects can spread throughout the economy, influencing mortgages, rents, savings, spending, employment, house prices and even government finances. The impact is not the same for everyone. A person with a large mortgage can be affected very differently from someone with substantial savings. However, for many households, especially those carrying significant debt, …

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Reasons People Hold On to a Stock for Too Long

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Holding a stock for a long time isn’t automatically a mistake. Long-term investing often requires tolerating volatility and uncertainty. The problem occurs when someone continues holding because they can’t bring themselves to sell, rather than because the investment still makes sense. Here are the main reasons that happens. They Don’t Want to Admit They Were Wrong This is probably one of the biggest reasons. An investor buys a stock because they believe their analysis is correct. When the stock falls, …

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Why shares are now a better investment than property

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If you are deciding today in Australia between buying an investment property and investing in shares, the 2026 tax changes make shares more attractive for most new investors, particularly if the alternative is an established investment property. The tax advantage that historically made negatively geared established property particularly attractive is being reduced. The important point is that the changes are not simply “property taxes are going up while shares are untouched”. The major change is that from 1 July 2027, …

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Why Entry Price Still Matters, Even for Long-Term Holds

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A common claim among investors is that entry price becomes irrelevant if a stock is held for ten or twenty years. Over a long enough horizon, the strength of the underlying business does eventually outweigh the price paid. But price still shapes potential returns, downside risk, and an investor’s ability to stay the course during difficult periods. A Great Company Is Not Automatically a Good Investment The most common mistake is conflating a great business with a good investment. Strong …

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