> The claim that, "when interest rates rise, all asset prices must fall" seems, uhm, somewhat off.
Of course there are instruments like interest rate derivatives where you can make money when rates rise, but he's talking about ordinary assets like bonds and equities.
The reason all prices do indeed embed an interest rate is that all future cash flows need to be valued somehow, and those values go down as interest rates go up. So your equity that (somehow) is guaranteed to pay 10c next year is worth less if interest rates go up, just like if it were a bond.
Of course there are instruments like interest rate derivatives where you can make money when rates rise, but he's talking about ordinary assets like bonds and equities.
The reason all prices do indeed embed an interest rate is that all future cash flows need to be valued somehow, and those values go down as interest rates go up. So your equity that (somehow) is guaranteed to pay 10c next year is worth less if interest rates go up, just like if it were a bond.