Rising Rates = Huge Blow to Stocks
For This Week in Options, Amber and I get to the nitty-gritty of how interest rates actually affect stocks.Click here or below to catch the full details.Ongoing Fed rate hikes since March 2022 have been a concern for everyone this year. But news channels only parrot that it’s bad for stocks. Rather than following the talking heads, we want to lean back on concrete evidence for why that’s the case. If you’ve been following us for some time in True Options Masters, you know we’re all about pulling the data, crunching the numbers and studying real-world examples. As trading strategists, we want no room for error. That means verifying theories and assumptions rather than following them in blind faith. In this week’s video, we look at the models analysts use to calculate stock valuations and show you a real-life example of how even a small uptick in interest rates can have a major impact on a stock’s value and price.
If you have any ideas or topics you’d like us to cover, write us at TrueOptions@BanyanHill.com or leave a comment on the video above.
Michael Carr, CMT, CFTeEditor, True Options Masters