Tuesday 29 October 2013

Rate hikes 21000 Sensex What Gives

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29th October 2013
 
Equity Articles General
 

Hi Promofree

 

Rate hikes=21,000 Sensex, What Gives?

The common theory is that higher interest rates take up risk premium on equities leading to falling equity values. This theory can be debated across economic cycles but when the economy is slowing down considerable and inflation is trending up leading to higher interest rates, the sense for equities going up does not make sense. Or does it, if one takes a different approach to viewing equity markets at present.

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Arjun Parthasarathy

Website:www.investorsareidiots.com
Email:arjun@investorsareidiots.com
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