Investing in the S&P 500

Most de sions in investing are relative decisions. Investors try to find the most attractive opportunity so as to be able to achieve the highest risk adjusted return. Lower demanded returns lead directly to higher valuations. Money moves from one asset class to the next in search of the best bargains, which get bought up until they're at equilibrium with everything else. Changing the risk free rate has the tal to reset the returns on everything.