Thread: interest Rates

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  1. #1
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    interest Rates

    I'm beginning to think they are not going to go as high as everyone feared. I started buying utilities and telecoms a few months ago and they have run a bit. Based on the performance of utilities and other high yielders and the drop in the financials, is this pointing to a recession or just a change in sentiment regarding where rates are headed?

  2. #2
    I think the big issue with banks has been loan growth.

  3. Member
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    #3
    Quote Originally Posted by bluejay10 View Post
    I think the big issue with banks has been loan growth.
    Are they holding back to lend at higher rates or is it the regulatory changes in residential real estate or concern about property being over valued? I haven’t seen a big institutional bank involved in a big commercial real estate transaction in the last 2 years. The lenders have been regional banks like BBT Bank of the Ozarks etc. This is sort of what happened back in 2007.

  4. #4
    I'm not sure what's the issue is. It could still be regulatory or rate are to high. I know my local bank use to write 34 loans a day before the crisis and since then from 09 to now has only avg 14 a day.

  5. Stocks/Investments Moderator boneil's Avatar
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    #5
    I think rates continue to go higher, I don't see any reason for them not to. The economy will continue to grow and the Fed will continue to reduce it's balance sheet. With the Fed reducing it's balance sheet, I think, it's slowing the stock market. Earnings growth are going to have be really good to get the market to look pass QT, (quantitative tightening). We have alot of QT to do, about 4 trillion worth. I just don't know if the economy can sustain any strong growth for any significant amount of time.
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