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How Higher Interest Rates Alter Our Financial Blueprint

Money For the Rest of Us

English - October 04, 2023 13:54 - 28 minutes - 26.2 MB - ★★★★★ - 1.3K ratings
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We explore six impacts of higher interest rates on housing, capital projects, stock buybacks, excess returns for stocks, bonds, and other asset classes, and individual opportunity costs.

Topics covered include:

Where current interest rates standCentral banker predictions for how long cash yields will stay this highWhy housing is the least affordable since the early 1980sWhy new apartment building construction has collapsedWhat has been the excess return for stocks, bonds, and other asset classes when interest rates are higher and lowerWhy there will be fewer stock buybacks and how that can impact earnings per shareWhich alternative investments do better when short-term interest rates are higherWhy financial opportunity costs have increased and how that should impact our investment and other financial decisions.


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Show Notes

Summary of Economic Projections—The Federal Reserve

The Apartment Market Is Hitting a Construction Lull by Will Parker—The Wall Street Journal

30-Year Fixed Rate Mortgage Average in the United States—FRED Economic Data

Americans Are Still Spending Like There’s No Tomorrow by Rachel Wolfe—The Wall Street Journal

Honey, the Fed Shrunk the Equity Premium by Portfolio Solutions Group—AQR

Companies ease off on share buybacks as rising interest rates push up costs by Nicholas Megaw—The Financial Times

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