Saturday, November 7, 2015

Interest rate and the stock market

Most likely, the rate hike will be insignificant in a year before election.

I bet a higher hike in 2016 that would cause the market to take a bigger breather due to:

1. High margin debt would collapse.
2. Less acquisitions and buyouts due to higher interest rate.
3. Bottom line would be hurt due to higher interest expenses.


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The other risk is the strong USD.

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