# Professor Aswath Damodaran on the relationship between interest rates and earnings

1 Faculty News June 8, 2015 ![Bloomberg logo](/sites/default/files/styles/246w/public/assets/images/bloomberg_0.jpg?itok=qy2YlnxP)>

Excerpt from [Bloomberg](http://www.bloomberg.com/news/articles/2015-06-08/u-s-stocks-on-wrong-side-of-history-with-rate-increase-in-sight) -- "'Rate movement is almost never going to happen in a vacuum,” [Damodaran](http://www.stern.nyu.edu/faculty/bio/aswath-damodaran) said by phone. 'If rates go up because the economy is going stronger and you ask me what the effect on stocks will be -- it depends. It depends on how much the economy getting stronger pushes up earnings.'"

[Read more](http://www.bloomberg.com/news/articles/2015-06-08/u-s-stocks-on-wrong-side-of-history-with-rate-increase-in-sight)