Investing in an era of higher interest rates and scarcer capital

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As the reality of higher interest rates and scarcer capital sinks in, investors are scrambling to adjust. They should focus on these three rules:

end of cheap money. Share prices have been through worse, but only rarely have things been as bloody in so many asset markets at once. Investors find themselves in a new world and they need a new set of rules.500 index of leading American shares was down by almost a quarter at its lowest point this year, erasing more than $10trn in market value. Government bonds, usually a shelter from stocks, have been blasted: Treasuries are heading for their worst year since 1949.

This era of dearer money demands a shift in how investors approach the markets. As reality sinks in, they are scrambling to adjust to the new rules. They should focus on three. However, as Warren Buffett once argued, prospective investors should rejoice when stock prices fall; only those who plan to sell soon should be happy with high prices. Nervous or illiquid investors will sell at the bottom, but they will regret it. Those with the skill, nerve and capital will take advantage of the higher expected returns and thrive.

The third rule is that investment strategies will change. One popular approach since the 2010s has blended passive index investing in public markets with active investing in private ones. This saw vast amounts of money flow into private credit, which was worth over $1trn at its peak. Roughly a fifth of the portfolios of American publicwere in private equity and property. Private-equity deals made up about 20% of all mergers and acquisitions by value.

 

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SOSFreeBrazilianIndians

Which stock? Carvanna or Facebook? Those generic Warren Buffetism are useless.

Hadi borsalari bi tepetakla yapinda Su iskence bian evvel baslasin

Rich people are bad people.

Economic theater from corporate propagandists about our rigged economy run for and by oligarchs and oligarch wannabees. The media and business 'elites' worked hand in glove with the political class to fuck you and yours ruthlessly over decades.

Correct me if I got this wrong but aren't higher interest rates supposed to curb investments? Keep madly investing and the FED will keep madly raising rates?

It will be an era of not only scarcer capital but also most choosy capital. Funds having capital will be spoilt for choice and to borrow Darwin, only the fittest and deserving will get it.

In fact, the main question is, while the Islamic Republic is executing thousands of protestors in Iran, which side are you on? MahsaAmini iranrevolation2022 women_life_freedom UNHumanRights UNICEF Refugees UNOCHA POTUS UNESCO

The economic market has bn gored&haemorrhaged by internecine tensions&conflicts in the world,climate change's famines&diseases. It's nolonger business as usual. Any attempt to stick to th script wl be strategically disappointing& disastrous. ZimTreasury MoFA_ZW edmnangagwa

Scacer capital? How can that be after the TrumpTaxScam ensured the wealthy don't pay taxes?

Diversify with alternative assets.

Sorry everybody is too busy reading how Twitter blocked conservative voices while denying they shadiwbsnned anybody.

God forbid, the First World learns how to make stuff rather than investing in mercantilism and becoming feudal rentiers.

Mohsen Shekari, who was one of the protesters arrested on 25th of september, executed on 8th of December by Islamic Republic. If UN does not take any actions to pressure and stop them. they will execute more protesters. MohsenShekari MahsaAmini ToomajSalehi

MohsenShekari 23 years old, was executed today by the Islamic Republic regime for protesting! He had not killed anyone,but still got the capital punishment! The world needs to wake up and see the real monster nature of this regime! Do what is right! Be our voice! IranRevolution

Which have no predictive power. Investments can fall as often than they rise.

In the end days of the gold rush it was the investors who turned to the science of geology, engineering, & industry of scale that got rich and stayed rich.

HuseyinAkseki erguntekgul

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