MelloMufasa
commented on
MelloMufasa
liked
A zero percent interest rate pushed money into the market for a real return. Anywhere else, money is being crushed in value due to inflation.
With no interest rate, debt makes you money at this rate. Added with retail investors dumping money into the market, companies and assets are being propped up with cheap money
Once interest rates go up, companies with high debt are going to be punished since that will cost them money.
Wild, speculative markets like EV are going to be crushed. Companies with no income and high speculative growth will come down. Essentially, fundamentals are going to matter again.
$SPDR S&P 500 ETF (SPY.US)$ $Dow Jones Industrial Average (.DJI.US)$ $Tesla (TSLA.US)$ $Rivian Automotive (RIVN.US)$ $Lucid Group (LCID.US)$ $NVIDIA (NVDA.US)$
With no interest rate, debt makes you money at this rate. Added with retail investors dumping money into the market, companies and assets are being propped up with cheap money
Once interest rates go up, companies with high debt are going to be punished since that will cost them money.
Wild, speculative markets like EV are going to be crushed. Companies with no income and high speculative growth will come down. Essentially, fundamentals are going to matter again.
$SPDR S&P 500 ETF (SPY.US)$ $Dow Jones Industrial Average (.DJI.US)$ $Tesla (TSLA.US)$ $Rivian Automotive (RIVN.US)$ $Lucid Group (LCID.US)$ $NVIDIA (NVDA.US)$
30
2
MelloMufasa : the war is gonna shut everything down
MelloMufasa : go stream my music MELLO MUFASA on everything. idc about this lol