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I never understood that logic. Like, why would risky assets rise their prices when central banks are paying more interest?
by pid-1 4y ago
I never understood that logic. Like, why would risky assets rise their prices when central banks are paying more interest?
- Ekaros 4y agoIt might make sense if stocks were not overvalued. Which they clearly are. As realistically valued if the companies can keep increasing prices in line with inflation the underlaying value should match the economy in general. So the value of companies would inflate too... Thus inflation not having effect. But, we are now at least in my mind dealing with overinflated stock market. Propped up and pumped by cheap debt. And with rising rates that can't go on.