FYI: Interest rates are a huge driving force behind many investment decisions. You can call them discount rates, hurdle rates, lending rates, borrowing rates or whatever, but their level definitely has an affect on risk appetites.
But I also think it’s possible for investors to put too much faith into the almighty interest rate. For instance, there’s a huge difference between credit and interest rate levels. Rates were much higher in the mid-2000s but credit was much looser so people borrowed like crazy, something they’re not doing as much today.
Regards,
Ted
http://awealthofcommonsense.com/2016/10/when-market-signals-look-too-good-to-be-true/
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Nick de Peyster
http://undervaluedstocks.info
Regards,
Ted