Take It To The Bank: Interest Rates Won't Rise - Keith Weiner (12/02/2018)

Feb 12 19:02 2018 Print This Article

February 12, 2018

How Not to Predict Interest Rates

We continue

our hiatus from capital destruction to look further at interest rates. Last

week, our Report was almost prescient. We said:

The first thing we must say about this

is that people should pick one: (A) rising stock market or (B) rising interest

rates. They both cannot be true (though we could have falling rates and falling

stock

s).

We write these

Reports over the weekend. At the time of last week’s writing session, Friday’s

close on the S&P was 2757 (futures). Monday this week saw a crash, with the

S&P down to 2529 at the low point in the evening. That is a drop of -8.3%.

We are not

stock prognosticators, and we will neither tell you “short the market” nor “buy

the dip”. We have a different point to make.

Rising

interest rates, by a variety of mechanisms, cause stocks and all asset prices to

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About Article Author

Sprott Money

Established in February 2008, Sprott Money Ltd. is a leading precious metals wholesale, institutional and retail dealer selling gold, silver and platinum bars, coins and wafers online and over the phone. Sprott Money's storage program gives clients the ability to store their precious metals in multiple storage facilities located in Canada, the United States and internationally. Sprott Money Blog, which covers world events, geopolitics and of course precious metals.

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