In short, the question is why are stocks dropping. Everything is tanking as we all know.
But, I think there's a big difference in stocks dropping due to interest rate rises and stocks dropping because there is a potential recession coming as a result of the interest rate rises.
In the case of the latter, I believe a recession is just part of the cycle of boom/bust and the economy will eventually turn around and return to ATH's.
In the case of the former, it scares me that interest rate level has a large impact on the fundamentals of the economy.
Warren Buffet always say interest rates are to asset prices what gravity is to matter. If rates do stay at higher levels than we've had for the last 10 years or so, then it could be a slow slow climb up from wherever the low point of this stock market fall is, or that's my fear at least.
So what's the general consensus of WHY the market is dropping so much? Change in fundamentals of companies due to interest rate rises or likely recession due to interest rate rises?
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