Global Rising Rates Repercussions (5)

Investors pouring funds into stocks

3) Investors are still pouring funds into stocks of almost all markets, chasing equity and currency gains at the expenses of US dollar.

They will continue to do that until the US dollar drops substantially, thus improving actual returns of investors (hedge funds included).


4) Rates cannot continue to rise without something happening to asset prices.

Surprisingly, equity prices in America have surged.

The inevitable will happen, there will be more rate hikes in the US and the bottom will fall out.