Is it because the market thinks inflation is going to compress earnings?
But you’re saying the bond market is predicting inflation to level off?
well it's a lot of things.
much of it is that at these higher interest rates, stocks are worth less as a financial asset. So the earnings might stay the same, but the PE multiple would compress, bringing down the share price the 20% we've seen. People just willing to pay less for earnings.
others feel those earnings ests will fall b/c of higher costs or economic slowdown
LOL don’t tell me that you’re unfamiliar with the idea of giving someone a taste of their own medicine. You need to look at things under the ultraviolet light of social interaction, nearly.
EMD finishes the day DOWN 0.31%. Genius! I hereby designate Igy’s fund ticker as FAIL, for Failure As I Laugh.
well....turns out there is still a central bank 'put' out there....but it's the Chinese central bank offering it, not the Fed.
Hong Kong (CNN Business)China on Friday slashed a key interest rate to rescue its slumping housing market and head off a major downturn in the world's second largest economy. The People's Bank of China cut its five-year loan prime rate (LPR) by 15 basis points to 4.45%, the second reduction this year and the largest on record. Most analysts had expected a cut of five basis points.