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The link between interest rates and investment seems pretty sound, I think it's more likely that we are just seeing a secular trend of retail still recovering f
by jjoonathan 3y ago
The link between interest rates and investment seems pretty sound, I think it's more likely that we are just seeing a secular trend of retail still recovering from covid or something.
- lamontcg 3y agoThere's a lot of lags in the system as well. Like another comment mentioned housing starts have fallen off, but there's still work on ones already being built. The bad businesses/investments that have been propped up by zero interest rate financing also will need to hit their loan maturity dates for them to adjust upwards. It is normally 6-12 months after the Fed stops raising rates that there's a recession. And the big recovery from covid right now is hospitality.