Three steps and a stumble rule
A rule predicting that stock and bond prices will fall following three increases in the discount rate by the Federal Reserve. This is a result of increased costs of borrowing for companies and the increased attractiveness of money market funds and CDs over stocks and bonds as a result of the higher interest rates.
Nearby TermsThirty-day visible supply Thirty-day wash rule Three steps and a stumble rule Three-phase DDM Threshold for refinancing
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University