- Higher rates drive down the valuation of the physical properties themselves and harder borrowing for buying homes. Then government bonds > dividend yields.
4. Unprofitable / Speculative Tech:
were neutral-winner as they were typically sitting on loads of cash.
But for the first time, some are going into debt for the AI buildout and are scaling like startups again (eg.
$META
33%+ Y/Y revenue growth):
-> Cash-rich companies like
, and others may face more challenges (projected to take on debt long term)
However, despite short term volatility from projections + War in Iran:
One TACO could flip all the projections.
So, I would not bet on high interest rates or rate hikes or this trade.
And I don't think markets will either long term.
