The speed of the current rate-hiking process and how it’s impacting companies who benefitted in the easy money era
Transcript
| Danton Goei: | You can see here, so this black line on the far left here is the current cycle. Look how steep that is compared to the past cycles. This is over the last four decades of past interest rate hike periods. You can see that they've gone at different speeds, a slower, more progressive one in 2015 with the green line there and some faster ones, but we've been the fastest and the quickest and so that is certainly going to have implications. This is what's happened since that rate hike period has started. You can see here the global liquidity chart that Chris showed before, it's been plummeting down over a trillion in the past few weeks. The Goldman Sachs unprofitable tech index, what's happened to that? It's plummeted as well since the rate high has happened. Similarly, SPACs, that's no longer a thing. You don't really hear about them anymore and so that's really shrunk as well. This has been a big, big move, not just in interest rates, but in terms of market impact. It's had a really, really huge impact. |
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