"Instead, we have found that returns tend to be slightly below average and interestingly a bit less volatile compared to lower interest rate levels." "Our work shows that US stocks can perform quite well in a higher interest rate environment despite perceptions to the contrary," Belski wrote. US interest rates are set between 5.25% and 5.5%, which is the highest range since mid-2007. Federal ReserveAfter decades of dormancy, it's unsurprising that many investors have misconceptions about interest rates' impact on stocks. Investors can continue to ride this market rally by targeting stocks with limited leverage and plenty of free cash flow since interest rates are still high.

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Persons: Brian Belski, they've, Belski, they're Organizations: BMO Capital Markets, BMO, Federal, Technology, BMO Capital, BMO wasn't, Investors