Stocks could still rally with higher for longer interest rates
Here’s why elevated interest rates don’t have to mean a market slowdown.
The Federal Reserve held interest charges regular for its fourth consecutive assembly. Nancy Tengler, CEO & CIO At Laffer Tengler Investments, joined TheStreet to level to why greater for longer interest charges might no longer essentially derail a market rally.
Beefy Video Transcript Under:
CAROLINE WOODS: Attain you suspect stocks can proceed to rally if charges live greater for longer?
NANCY TENGLER: Yeah I enact. I imply, we saw it in the 90s. I additionally assume, the market has kind of stopped paying attention. We're I do know that we smooth contain volatility on press conference days, but most continuously the market is reacting powerful less violently than they were than it was early days. And it be in actual fact extra the bond market that brings wretchedness. And that is the reason additionally, by the arrangement, which I assume introduced the President and at all to postpone the tariffs.
It was the bond market, no longer the inventory market. So we enact assume so because earnings proceed to be sturdy. Steerage was decent this final quarter. Margins are wholesome and we assume that will proceed to be the yarn because corporations are genuinely the disclose of AI for the duration of their corporations. I saw a present conception, buyer reinforce human common. Every contact is $2.58, AI is $0.13, and customers are happier after the AI expertise, doubtlessly since it be faster.
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