Discover and read the best of Twitter Threads about #InterestRates

Most recents (24)

It was evident. Interest rates would rise as #inflation started spiralling.

To ride through the rate hike cycle⬆️, #FloaterFunds were touted as an ideal #investment option.

But, so far, they haven’t done well.

A 🧵on why #FloatingRateFunds haven’t delivered yet.
First, some basics.

When #InterestRates rise📈, bond #prices fall📉. Why? Investors would rather buy new papers at a higher rate than old ones with lower yields.

#FloaterFunds are not impacted by interest rate movement. There’s a simple explanation.👇
As the #InterestRates rise, the yields on floating-rate bonds also increase.⬆️

So, #investors don’t need to sell them to buy new papers offering higher interest rates.

But the converse is true, too. So, when interest rates fall📉, #FloaterFunds become unattractive.
Read 10 tweets
Google Trends - A Thread

1) Bear Market - Nearing 2020 Highs

#bearmarket
2) Recession -

Reaching previous peak levels of 2008/2020

#recession
3) Stock Market Crash - Yet to gain significance traction

#stockmarketcrash
Read 7 tweets
The Federal Reserve to raise the interest rate .75%, the announcement this Wednesday...
1/🧵
As inflation becomes more out of control the FED is set to decide to raise interest rates .75%
- The FED hasn't made that substantial of a hike since 1994
- At the beginning of their meeting on June 4th they initially decided to raise in the interest rate another half.
2/🧵
- But as new inflation and tumbling stock market numbers emerged the new rate hike number will be .75%.
- New consumer surveys have stated that inflation could hit 9% by next month and the planned rate hikes won't composite for Biden's runaway inflation.
3/🧵
Read 5 tweets
What factors to look for to understand which direction are #interestrates headed:

1. Total Credit in the system
2. Which gets divided into External and Internal
3. External focuses on #CAD
4. Internal: Private & Govt
5. Private - #CreditOfftake
6. Govt - #FiscalDeficit
3. External :
#CAD (Current Account Deficit - difference between country's #Imports & #Exports) goes up, #imports become expensive, rupee depreciates, bringing in imported #inflation

- interest rate tend to go up
4. Internal Credit
5. #PrivateSector - #Creditofftake goes up interest rates rise
6. Govt - #FiscalDeficit goes up interest rates rise
Read 4 tweets
India’s central bank hikes interest rates by 50 bps to fight off ‘globalised’ inflation

businessinsider.in/finance/news/i…

By @jainrounak and @KatyaNaidu
The Indian central bank today raised its #interestrates – the second time in a month - by 50 basis points. This is higher than last month’s hike of 40 basis points and the base interest rate at which the central bank lends is now at 4.9%.

#RBI #RepoRate
"The #reporate still remains below its pre-pandemic level," @DasShaktikanta, the governor of Reserve Bank of India (RBI) said while making the announcement.

#RBI
Read 6 tweets
Daily Bookmarks to GAVNet 04/21/2022 greeneracresvaluenetwork.wordpress.com/2022/04/21/dai…
Predicting the Next Big Thing: Success as a Signal of Poor Judgment by Jerker Denrell, Christina Fang
papers.ssrn.com/sol3/papers.cf…
#PredictionAccuracy, #ForecastingAbility, #ManagerialForesight
Read 13 tweets
Daily Bookmarks to GAVNet 04/06/2022 greeneracresvaluenetwork.wordpress.com/2022/04/06/dai…
The Genesis of Kerr Solution. A Complete Description of Spinning… | by Areeba Merriam | Apr, 2022
cantorsparadise.com/the-genesis-of…
#GeneralRelativity, #history, #JohnKerr, #RotatingBlackHoles
Read 13 tweets
It’s Monday and while we might have all woken up today feeling like #ChrisRock after the #Oscars the markets lacked a punch last week. Both the #Sensex and #Nifty remained unchanged and saw a fall of less than 1%, to close at 57,632 pts & 17,173 pts respectively. (1/5)
#NiftyMetal and #Energy indices were the outliers and saw a jump of 5.1% and 2.1% respectively. Not terribly surprising considering wars, high commodity prices and global uncertainty. The S&P 500 and #NASDAQ had a good week and closed at 1.8% & 2.3% ↑ respectively. (2/5)
The #Nikkei was 4.9% ↑. It’s been making significant recoveries after falling to its lowest point in a year, on 9th March. In India, #Commodity prices are up, #Energy prices are up, and soon the RBI may not have any option but to take #InterestRates up. (3/5)
Read 5 tweets
Mindset Moment 🧠

Sheesh, If you’ve been an active investor in the markets over the last 6 months, you don’t need ShadowInvestor™ to tell you what a hell of a ride it’s been.

Fears of rising rates and a slowing economy has completely flipped the switch on investor sentiment.
And that’s triggered a sell-off that’s seen the average tech stock fall by 37%.

We'll focus on tech for today but markets in general are looking heartbreaking & this could apply to you.

Pandemic favourites like Zoom & Peleton are down about ~80% and Australian tech about ~90%🤯
But despite the recent declines it’s easy to forget just how long this tech bull run has been going for.

Take e.g. ARKK, The famous tech ETF from @CathieDWood is down ~50% since this time last year.

But despite this, the ETF is still up ~40% from 2yrs ago (AKA pandemic).
Read 5 tweets
Saw a lot of tweets about #rbipolicy on twitter but do not know what it is ?

Here is small thread that will be help you.

Like and comment for a wider reach!
What is the RBI Policy?

RBI Monetary Policy is a macroeconomic policy of RBI. The main purpose of RBI Monetary Policy is money supply & interest rates.
#interestrates
What does this purpose achieve?

This purpose helps RBI to control & change Interest rates to maintain sufficient liquidity, consumption growth, and moderate Inflation.

#liquidity #InflationRate
Read 7 tweets
Now is the time to be bullish on #gold #silver and #preciousmetals Many experts like @antonioatanasv @SilverChartist @RealRickRule or @TaviCosta has been bullish on #preciousmetals but I truly believe that NOW is the time!👇🧵 1/15
We are in at the begging of an inflationary decade. January #CPI rising at 7,5%, we need to look at previous inflationary periods like the 40s and the 70s. 2/15
Those periods were very different, at the 40s the governmental debt was high due to #WWII but in the 70s the corporate and private #debt was much important and this effect to the monetary decisions of the #FRED 3/15
Read 15 tweets
Why gold should be the asset to focus on for the next few years?

#gold #investing #wealthcreation

A Thread!

1/13
M2 which is a broad measure of money supply, has grown 81% in the last 7yrs to nearly $20Trn. An increase in the supply of money typically lowers interest rates, which generates more investment and puts more money in the hands of consumers. Hence stimulating spending.

#gold
2/13
Bonds struggled during the last major stagflationary period, in the late 1960s. Rise in oil prices,unemployment, loose monetary policy pushed the core CPI Index to a high of 13.5%. The Fed had to raise interest rates by nearly 20%.

#gold #bonds #interestrates

3/13
Read 14 tweets
Daily Bookmarks to GAVNet 11/12/2021 greeneracresvaluenetwork.wordpress.com/2021/11/12/dai…
The Real Tantrum Should Be Over The Disturbing Lack of Celebration (higher yields)

alhambrapartners.com/2021/11/02/the…

#yield #BondMarket #CentralBank #normalization #InterestRates
Identification of LZTFL1 as a candidate effector gene at a COVID-19 risk locus

nature.com/articles/s4158…

#SARSCoV2 #genetics #risk #RespiratoryFailure #GainOfFunction #variants #TherapeuticTargets
Read 8 tweets
Daily Bookmarks to GAVNet 09/02/2021 greeneracresvaluenetwork.wordpress.com/2021/09/02/dai…
CEO Ridiculed for Raising Minimum Wage to $70K Has the Last Laugh

opednews.com/articles/CEO-R…

#IncomeDisparity #MinimumWage #FinancialPerformance
Cross-reactive CD4+ T cells enhance SARS-CoV-2 immune responses upon infection and vaccination

science.org/doi/10.1126/sc…

#SARSCoV2 #ImmuneResponses #infections #vaccinations #antibodies
Read 8 tweets
Is there an incoming policy error by the Federal Reserve? $DXY #FederalReserve #Dollar #Policy #Fed

Thread 1/
Over the past several weeks, we have seen significant Central Bank actions globally. This reflects a market flush with cash and a desire by the Federal Reserve to hold short-term rates positive. 2/
Mid-June 2021 FOMC Summary:
1. Unchanged rate and QE policy
2. Reverse Repo rate increase to 5bps
3. IOER increase to 15 bps
4. Dot plot showing rate hikes sooner than expected
3/
Read 17 tweets
Daily Bookmarks to GAVNet 04/12/2021 greeneracresvaluenetwork.wordpress.com/2021/04/12/dai…
The Weekly Quill – The Hope Diamond in the Rough

linkedin.com/pulse/weekly-q…

#history #diamonds #mining
You Might Have Earned It, But Don’t Forget That Your Wealth Came from Society

evonomics.com/wealth-of-huma…

#wealth #SocialInstitutions #value #InformationProcessing #profit #power #responsibility
Read 10 tweets
Daily Bookmarks to GAVNet 04/02/2021 greeneracresvaluenetwork.wordpress.com/2021/04/02/dai…
Linguistic tricks to grab your online audience’s attention

nature.com/articles/d4158…

#linguistics #AudienceAttention #engagement
Mistrust of the CBO is unfortunately a growing bipartisan avocation

marginalrevolution.com/marginalrevolu…

#CongressionalBudgetOffice #data #trust #reports #politics
Read 10 tweets
Daily Bookmarks to GAVNet 03/27/2021 greeneracresvaluenetwork.wordpress.com/2021/03/28/dai…
Reconsidering Monetary Policy: An Empirical Examination of the Relationship Between Interest Rates and Nominal GDP Growth in the U.S., U.K., Germany and Japan

sciencedirect.com/science/articl…

#MonetaryPolicy #InterestRates #GDP #NominalGrowth
Read 8 tweets
Here's a thread of thoughts to demystify complexity and quantitatively display how interest rates impact the value of future cash flows: 🧵👇

#Markets #InterestRates #stocks
1) Recently and especially after yesterday's FOMC announcements about monetary policy updates, several investors are discussing the role of changing interest rates and their impact on financial assets, particularly "growth stocks" and "value stocks".
2) Definitions:

1. DCF = Discounted cash flow analysis
2. Discount rate = The rate used to discount future cash flows back to their present value when determining the time value of money. Some investors consider this rate to be the opportunity cost of their investment.
Read 21 tweets

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