Middle East situation is lip service
As global long-term interest rates rise, the stock market may feel surprisingly resilient.
In this article, if around 10 years 5% or so is fair value, as I have written before. It is uncomfortable, but would you say that it is excessively tightening? Considering the current strength of the U.S. economy at high interest rates, not necessarily so. That would be the view.
In reality, high interest rates have persisted, but as indicated by very strong PMI figures for manufacturing and services, this month’s survey hardly reflects pessimism.
Interest rates are alarmingly high, mortgage rates exceed 7%, and new housing contracts remain low, but the actual situation is that corporate groups effectively utilize the cash injected during the COVID-19 crisis.