BlackRock's Kate Moore - Don't Bet Against US Corporate Dynamism | #543
The Meb Faber Show - Better Investing
The High Ground: Wealth Thrives in High Rates
In the current high-rate environment, larger companies and wealthier consumers benefit significantly. Large corporations, less sensitive to interest rates, have secured low borrowing rates and maintain high cash reserves. These reserves generate income if not actively invested, indicating resilience despite rising rates. Similarly, affluent consumers, particularly the top two income quintiles, see asset prices and investment accounts appreciating, while their cash deposits earn substantial interest. This dynamic counters the typical expectation that high interest rates hinder economic performance, highlighting that certain segments thrive under these conditions.
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