, and others
- Companies that sit on large piles of cash relative to MC, where interest rates make material difference to operational income.
- This is beneficial to a lot of brokerages, but also very nuanced eg.
- 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.
Either $ARKK digs in here, invalidates the top, and rips higher, or we’re talking about big problems for risky, high-beta stocks.
Big level👇
https://t.co/11Hoxy6zir https://t.co/IAwZpJ1l1U
$ARKK is looking vulnerable here. The lower bounds of a topping pattern and the VWAP anchored to last April’s lows are now coming into play. https://t.co/JMM8dBz4DJ
After a hard retest, $ARKK is once again attempting to complete a textbook reversal base.
The path of least resistance is higher as long as it holds above 79. https://t.co/PekNRKbS6x
