Post by
BayWall on Aug 24, 2023 9:42pm
Mythology or reality?
Exactly how many heads does the interest rate hydra have.
High interest rates increase cost of borrowng and that may negatively affect the stock price especially where the debt is large.
But also...
High yields in the bond market make investors less willing to pay high prices for stocks.
Comment by
tony08 on Aug 25, 2023 1:51pm
BayWall say: " high interest rate may negatively affect the stock price" Hey BayWall don't you think it's already been done.....and in an exaggerated way??? Here are some dates to refresh your memory: January 29, 2021, NPI to a high of $50.98 Last 52 weeks high: $45.74 today NPI is hovering around $25.50!!!
Comment by
BayWall on Aug 25, 2023 2:12pm
Other things are affecting the stock price. $25 just a temporary bounce-up for now? Powell's speech today, good chance higher interest rates coming. Investors should have seen for a few years now, that revenues included magic stuff like unrealized derivative income (and may never be) and assets consisting of vague "intangibles".