A Long-Term View On Interest Rates

In the textbook, we show a chart of long-term interest rates. For a slightly longer view of interest rates, Louise Yamada shows interest rates back to 1790. A difference in the textbook figure and the figure provided by Yamada is that the interest rates in the textbook, taken from Jeremy Seigel's Stocks for the Long Run, is that Seigel uses government bonds while Yamada uses corporate bonds. What may also be of interest to you is that Yamada discusses interest rates in terms of a technical analyst. She notes that interest rates have peaks and bottoms, bases, and states that a reversal is in order.