5 ms·
The market seems to have priced this in, which is good + expected. Things may hurt in the short term, but in the long term "normal" interest rates will benefit
by debacle 4y ago
The market seems to have priced this in, which is good + expected.
Things may hurt in the short term, but in the long term "normal" interest rates will benefit Americans + strengthen the US economy globally.
- 01100011 4y agoWhich market? The stock market? No. The bond market? To a degree. Markets are still digesting the news that there will be no rate cuts this year barring a catastrophe. Stocks remain highly overvalued. Equity risk premium is in the gutter(https://www.morganstanley.com/ideas/equity-risk-premium-low-q1-2023 https://www.morganstanley.com/ideas/equity-risk-premium-low-...). There is little upside to stocks vs bonds right now. Stock valuations still aren't reflecting earnings revisions likely later this year as the economy cools. We've been riding on the savings built up during covid but that's starting to run dry. Personally, I'm almost 100% in T-bills with some long dated puts on the major indexes to hedge my unvested stock based compensation.
- deleted 4y ago[deleted]