RE:RE:RE:RE:RE:RE:7%boazklinghorn wrote: Dude youre quoting Peter Schiff who has been a bear and wrong everyday since the financial crisis of 2008. Anyone who listened to him missed the best decade ever. You may want to find a better guru.
I'm quoting him today. The world was on the deathbed of ~0/negative interest rates for over a decade. If the global economy had trouble jumping over a hurdle of ~0% for over a decade how is it going to jump over the sharp spike in rates to a current FED rate of 5.33% potentially heading to 7.00%? There is record debt. Loans eventually reset. COVID and Putin's war and the need to repatriate supply chains from an increasingly threatening China and tight labor markets plus government deficits have ripped the mask off the fake and unsustainable ~0% rate economy. India is also an increasing threat. Given the political divisions in the US which have even manifested into the Jan 6 insurrection is there the will to address the problems ahead of a key election. These are risky times. You have had a hard time adjusting as you brought ABCL to this message board during the rise in rates. It's fallen 52.5% this year alone and is down 92% in less than three years. I hope the world is better prepared for the interest rate shock than you've been as borrowed money resets at higher rates. Many biotech companies are now facing bankruptcy and reorganization. As Buffett has said when the tide goes out you get to see who has been swimming naked. The tide of ~0% interest rates has been quickly going out. There are lots of naked people about to be exposed.
Do the math:
Trailing 12-month US deficit is 8.4% of US GDP.
What if it were to drop in line with the historical ≈ 2%?
Math: 8.4% - 2% = 6.4%.
A shocking 6.4% drop in GDP...