RE:RE:LFE UNIT NAV in realtime @ $15.25 before distributionsYes normally higher interest rates do help banks and lifecos, but these are NOT normal times.
Record inflation in consumer /household costs, will make higher interest rates another nail in the insolvency coffin of many home owners. Canadian household debt is at extremely high levels, and for many the cost of the mortgage payment on the house, utilities, upkeep and taxes take over 80% of disposable income.
As long as the hikes are gradual and small, i dont think we see a huge drop in the markets.
But one of the drivers of the stock market is (and was) the fact that there is not many places to put your money and make enough to keep up with inflation. The other recipient of this phenomenon, is the house and real estate markets, which have seen huge jumps.
We kept hearing about imminent interest rates hikes for the past year, and ..... so far they havent pulled the trigger. They know what will happen.
speedyfeint wrote: thanks for the live nav update but i heard interest rate hikes are actually good for the lifecos and banks..
so when they finally start to hike rates in march, wouldn't that be good for LFE?