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A 1-Year Treasury Bill Now Yields 5.4%. Here's Why That's Bad News for the Stock Market.

TheMotleyFool

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A 1-Year Treasury Bill Now Yields 5.4%. Here's Why That's Bad News for the Stock Market.: https://g.foolcdn.com/editorial/images/739122/finance-stock-chart-sp-500-spy.jpg

Here's a stat that might shock you: A $10,000 investment made in the S&P 500 on Jan. 3, 2022 would be worth only $9,171 today.

Despite this year's 15% year-to-date rally in the S&P 500, the benchmark index is clawing out of the massive hole caused by last year's 18% decline.Meanwhile, over this same period, short-term interest rates have risen from near 0% to over 5%. For stock market investors, this could be an ominous sign.

Let's take a closer look to see why that's the case, and examine what -- if anything -- investors should do about it.

Source Fool.com

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