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The stock market has been doing terribly lately, so I wonder what dynamic is going on right now- even with higher profits something is fishy (high interest rate
by mechE321 4y ago
The stock market has been doing terribly lately, so I wonder what dynamic is going on right now- even with higher profits something is fishy (high interest rates mean a higher yield on bond investments as an alternative, so lower valuations?)
- deleted 4y ago[deleted]
- reducesuffering 4y agoYes, the last part. Stock market profits are still growing, it's that P/E multiples are being reset due to the alternative of safer higher interest rates on bonds and cash. Plus there's recessionary fears from global issues like the ongoing invasion of Ukraine and China's lockdowns potentially major shuttering of global supply.