# Prof. Aswath Damodaran on the connection between interest rates and stock prices

1 Faculty News April 12, 2013 ![Wall Street Journal logo](/sites/default/files/styles/246w/public/assets/images/wsjlogo.jpg?itok=5Qt0z3WX)>

Excerpt from [The Wall Street Journal](http://online.wsj.com/article/SB10001424127887324883604578398721721657406.html?mod=googlenews_wsj) -- "Whether rising rates lead to rising stock prices also will depend on why rates increase, notes [Aswath Damodaran](http://www.stern.nyu.edu/faculty/bio/aswath-damodaran), a finance professor at New York University's Stern School of Business who has looked at the relationship between Treasurys and stocks. If interest rates rise because the economy is improving, stock prices might indeed go up. But if it's because inflation fears are rising, stocks could fall, he says. 'Interest rates don't rise for no reason,' he says."

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