Posted 1/11/2024, 10:08:14 PM
Interest Rates Rising After decades of Decline, Impacting Stocks, Housing and More
- The price of money (interest rates) is more important than prices of oil, semiconductors, etc.
- The price of money has been falling for over 3 decades but is now set to rise.
- The "natural rate of interest" balances savings, investment, and inflation. It's been declining but will now reverse.
- Lower natural rates were driven by factors that are reversing. This will impact home prices, stocks, debt, etc.
- Bloomberg Originals has a new video explaining why rates are rising and what it means.