Rising Interest Rates
Companies are rushing out to sell their stocks, should we be rushing to buy? In May the companies of the US Market sold a record breaking amount of stock around 64 billion dollars worth. In June the trend continued. Stock prices are high causing companies to sell to ensure they get the most money back. Since March, the yield on the 10-year treasury has jumped from 2.5% to 3.8%, sending prices — which move in the opposite direction — down a staggering 34%. Due to this rise in prices inflation will take hold during the next couple of years where as other nations such as China have economy’s that are uprising.What are the implications of such inflation during this time of deficit and penny pinching?
What effect does this have on business and real estate?
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