Rate accompli: Are rising interest rates bad for all assets?
Many Happy Returns
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Investing in a Rising Rate Environment
When you buy something you're buying a stream of cash flows that's effectively what most assets are. And they all have the same sign when it comes to increasing interest rates because the discount factors reduce their cash flow value. Everything is kind of hugely skewed towards being negatively correlated with rising rates. There is a great asset to own when rates are rising and that is a long term fixed rate loan.
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