Nathan Howard | Bloomberg | Getty ImagesThis report is from today's CNBC Daily Open, our new, international markets newsletter.
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Typically, stocks — if they do well — tend to return more than a risk-free asset, precisely because it isn't certain stocks will rise.
While "the Fed can control short rates," long rates going up can introduce "significant risk" to the economy, such as the recent Fitch downgrade and quantitative tightening.
It wasn't a surprise, then, that stock markets fell Tuesday.
Persons:
Nathan Howard, yield's, Rupert Thompson, Cash, That's, Bob Pisani, it's, Torsten Slok, Adam Turnquist, Ed Yardeni
Organizations:
Treasury, Bloomberg, Getty, CNBC, Kingswood Group, Dow Jones Industrial, Nvidia, LPL, Yardeni
Locations:
Washington , DC