/biz/ - Business & Finance

Finally. It's time to correct.

OH NO NO NO

>>12227144
A 50% correction from current levels is in line with both TA (previous tops become support) and historical valuations relative to GDP and corporate profits. Continued Fed interest rate rises will spell the end of easy money, which will severely impact overlevered companies who have been relying on easy debt to fund buybacks, dividends, and other nonproductive uses of capital.

>>12224523
If Trump had his way, he'd keep rates at 0% forever, which would lead to a 20 year golden bullrun followed by the Greatest Depression. The Fed is prepping for a soft landing; unfortunately, they waited too long, and are doing rate hikes during a potential trade war.

>This is a perfect buying opportunity
>There are no repercussions to 10 years of cheap debt followed by persistent interest rate hikes
>The 2/3/5 year yield inversions don't count
>The yield curve flattening is different this time due to low inflation
>Record high levels of leveraging and stock buybacks are sustainable ways of increasing stock valuations
>Banks have enough capital this time