And I think that the entire public market is likely to go down—perhaps substantially—when interest rates materially move up, though that may be a long time away.
Can someone EL5 this? Arguments that seem plausible (to me):
1) higher interest rates make borrowing more expensive
2) higher interest rates make less risky investments more attractive
3) something hand-wavy about inflation and the role higher-interest rates play in combating it (or, more precisely, the signal that sends to the market)
Can someone EL5 this? Arguments that seem plausible (to me):
1) higher interest rates make borrowing more expensive
2) higher interest rates make less risky investments more attractive
3) something hand-wavy about inflation and the role higher-interest rates play in combating it (or, more precisely, the signal that sends to the market)