taking a survey for intersting ideas.
doing some kickers for us.
scenario from pm's. good questions for us to answer one at a time.
Hello Mick,
Well since Bernanke may just be looking at this "core inflation" issue more thoroughly, and the possibility of continuing to raise interest rates. I have come up with some questions that the experts can look at.
Maybe one of the economist/reporters out there can come up with an article that will help us understand how higher interest rates effects short and long term stock investing/trading. ie
will there be more deals, less deals(IPO's, new companies, etc),
does it effect pps of all/any market cap size stocks,
will it cause less/more restrictions on individual traders,
does it increase the cost of lending/borrowing so that growth becomes more difficult for our microcaps?,
Will it increase savings rates for families by offering better savings interest rates?,
will it cool down real estate bubbles ( ie rising house prices, extensive housing lending ) so that more will settle in and decide to do more investing instead of only looking at real estate as their investment.
Will it slow purchassing for consumers in retail market stocks?. Since many of the top market cap stocks are based upon consumer demand, I doubt demand will decrease with higher interest rates so it shouldnt effect how much fuel we purchasse, whether we buy clothing, go to walmart,etc.
How will it effect investment banking from the JPMorgans and Morgan Stanley's out there ?
Also how does rising interest rates effect US dollar valuation and deficits are they mutually exclusive, etc.
Well difficult questions but it would be VERY interesting to see the experts tackle these. Core inflation is rising I believe though so it is a relevant set of questions.
Well thats a good Monday morning wake up call