📈 SigmaTrader Blog

 Interest rates have been the backbone of market trends for decades. After nearly 40 years of falling rates , culminating in near-zero levels during the COVID-19 pandemic, we're now seeing a historic reversal. The big question: 🧠 Are we entering a new era of long-term rising interest rates — and what does that mean for investors? 📉 Flashback: The Great Rate Decline (1981–2020) After peaking in 1981 , U.S. interest rates declined for nearly four decades: 1981: 10-Year Treasury yield hit ~15.8%, Fed Funds Rate was over 20%. 2020: 10-Year yield bottomed around 0.5%, with Fed Funds Rate near 0%. This dramatic drop: Fueled tech and growth stocks, Boosted housing markets, Encouraged high leverage across consumers and corporations. But this regime may now be over. 🔁 Reversal: Post-COVID Rate Spike In response to the inflation spike of 2021–2022, the Fed hiked rates at the fastest pace in modern history. From 0% in 2021 to over 5.25% in just 18 months. A r...