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Low interest rates don't effect whether a stock goes up or down. That is determined by earnings growth. Edit: Peter Lynch agrees with me. Instead of being a pa
by ketamine__ 6y ago
Low interest rates don't effect whether a stock goes up or down. That is determined by earnings growth.
Edit: Peter Lynch agrees with me. Instead of being a passive aggressive downvoting asshole leave a comment.
https://youtu.be/UNrMnFM3VvE https://youtu.be/UNrMnFM3VvE
Edit: Lol, I can't respond to your comments because everyone downvoted my comment and HN rate-limited me. Later.
- taylorwc 6y agoThis seems a little myopic. Definitely earnings growth is a factor, but it can’t really explain what just happened with GameStop and WSB, nor most of Amazon’s rise over the past decades. Future expected cash flows, market size, interest rates (and therefore capital seeking yield via equity markets) are all factors. Alongside human tastes, cultural perception, and pockets of irrationality.
- ketamine__ 6y agoYou cherry picked examples. I'm talking 99% of cases.
- eloff 6y agoLow interest rates definitely increase the amount of money chasing equities. There's no where else to get a good return. This pushes up the price of equities and decreases their return too. Also Peter Lynch is no fool, so I'd like a source for you saying he thinks there is no connection before I believe he said that.
- ketamine__ 6y agohttps://youtu.be/UNrMnFM3VvE https://youtu.be/UNrMnFM3VvE
- colinmhayes 6y agoImagine thinking fundamentals have anything to do with stock prices.
- PKop 6y agoOf course they do. Lower interest rates enable growth in corporate debt, which has been used to buy back stock. There is a direct connection between decades of lower rates, stock buy backs, and asset appreciation including stocks. https://archive.is/NMR1R https://archive.is/NMR1R
- ketamine__ 6y agoI'm talking about over the long-term. You know, investing?