No the market is tanking because interest rates are rising. Look for companies to report strong earnings next two quarters. Watch for the revision of December GNP to above 3% to boost stock prices again
mostly correct, but the question is why are interest rates rising, not just in the usa but globally. during the era of obambi, sovereign debt piled up and gov’s needed to push rates down so their service costs were lower. Now that the orange one is slashing regulations and unleashing the American business spirit, the world has to react. The demand for new debt by business is rising globally as a new economy is being created. Like any commodity debt is scarce unless its to fund socialist endeavors. As the proportion of debt demand moves to commercial productive endeavors, the price, ie interest rate goes up. An interesting consequence of rate increases is the fall in bond prices. If the idiots in gov would just start purchasing debt back they let at 0%, the cost would be less then the selling price.