4 ms·
bonds are high because interest is high. interest makes money more expensive, which generally causes less economic activity, not more. so that's a weird bit of
by MAGZine 3y ago
bonds are high because interest is high. interest makes money more expensive, which generally causes less economic activity, not more.
so that's a weird bit of causality that you've included in your comment.
in particular, in tech many companies will face a reckoning when they're unable to raise at terms they need to survive.
- adam_arthur 3y agoThe rate on bonds only matters relative to the rate of inflation. Bond yields below inflation (in aggregate in the longer term), are stimulative, regardless of the nominal level. Financial conditions have been easing over the last few months, not tightening. Fed hikes only impact the short end. Long end is market based