Sorry for being a noob,but lower interest rates means cheaper

Question

WAGMI: Chainlink Community

Lars

Sorry for being a noob,but lower interest rates means cheaper

money right? wouldn't that be good for stocks and crypto in the longterm?

#blockchain #cryptocurrency #english #link

0

16.09.2024

3 ответов

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Drake

Lower rates in isolation is good for risk assets but you need to separate out the scenarios. A couple of conservative rate cuts because inflation has been tamed = stable / bullish. Sudden aggressive rate slashing as a response to a contracting global economy = bearish.

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2 месяца назад

Drake

Yoshi
Yes you’re correct. But unfortunately we saw low i...

The real printing will come as a response to a bust, but we can have rate cuts prior to that scenario where we are in a "goldilocks" zone and markets themselves are bullish while the economy is deteriorating, they don't go in lockstep together and there is leads/lags with the data/responses. This is why basically noone saw SPX constantly printing new ATH's this year (it hasn't finished)

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2 месяца назад

Yoshi · Accepted Answer

Yoshi

Yes you’re correct. But unfortunately we saw low interest rates in the U.S. from 2009->2019. Look at BTC, & equity markets in that timeline. Absolute boom. We’re in a different game now. Tough to predict the short term effects of $$ printing again.

0

2 месяца назад

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Sorry for being a noob,but lower interest rates means cheaper

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