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Surely speculation about the rise in interest rates has been taken into account by the market, though? If I expected stocks to decrease _drastically_ in the fut
by CapmCrackaWaka 4y ago
Surely speculation about the rise in interest rates has been taken into account by the market, though? If I expected stocks to decrease _drastically_ in the future as the fed increases rates, I would just sell right now, maybe even hold a short position. I feel that real interest rates do effect the market, but the expected future interest rates must also be a part of the "where do I put my money right now" formula.
- runeks 4y agoRelevant point. I agree that the current correction is a reflection of the market’s expectations/predictions. But only for the medium term. The market has no idea what the interest rate will look like in 10 years — which is at least how long it’s going to take if it ever gets to 15-20%. There are simply too many unknowns to predict that.