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Interest rates go up, future revenue becomes less valuable, companies lay people off to add to their margins to preserve their valuations.
by disgruntledphd2 4y ago
Interest rates go up, future revenue becomes less valuable, companies lay people off to add to their margins to preserve their valuations.
- simplotek 4y ago> Interest rates go up, future revenue becomes less valuable (...) I don't think this is true at all. Central banks hike interest rates to limit and reign in inflation. It's the exact opposite of what you claimed.
- disgruntledphd2 4y agoIn terms of people deciding to invest in a company, high interest rates definitely make future revenue less valuable in terms of discounted cash flow models.