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> rising interest rates making capital much more difficult too secure. Can someone please explain this to me or point me to some reading material. How does int
by DarkCrusader2 5y ago
> rising interest rates making capital much more difficult too secure.
Can someone please explain this to me or point me to some reading material. How does interest rates and investment in tech companies are related? How do we know that interest rates are going to rise soon?
- picture_view 5y agoI can’t answer about the relation to tech investment, but the federal reserve has a meeting every month and they have been explicitly saying for the last few meetings that they intend to raise interest rates several times this year.
- sakoht 5y agoRegarding interest rates, they are already up. I got a house 4 months ago at 2.85%, and now they are 4.2%. I can't speak to whether investment in tech will drop. Lately, there is so much spare money floating around investors can't find homes for it. Inflation suggests to me _more_ desperation to have the money invested, not less. And the net cause seems to be a steady stream of wealth consolidation allows a smaller subset of the economy to hold more and more wealth.
- hither_shores 5y agoAll investment opportunities, to a first approximation, are competing with one another for capital. When interest rates drop, newly issued bonds become worse investments - but you've got to invest in something, so money flows into everything else. When interest rates go up, the opposite happens.