It's OVER for InvestorCels

MatureDJ

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The aggressive monetary tightening launched by the Federal Reserve last year has brought an end to a “Golden age of investing’ that will force Wall Street traders to rethink how they allocate their portfolios, says Ralph Schlosstein, chairman emeritus at Evercore ISI.

“The last 40 years have kind of been the golden age of investing. I don’t think we are going to have that for the next 10 or 20 years,” Schlosstein said on Bloomberg TV Wednesday. “If you step back a little bit, we went through a 40-year period of time where rates were generally declining, longer rates, and they got extraordinarily low. I think that period of time has passed.”
 

taiyuu_otoko

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Lot of shorting opportunities for techs and startups that are going to be destroyed as interest rates creep up.

Anybody carrying a lot of debt is going to get demolished.

Which is pretty much everybody these days.
 

Reincarnated

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Lot of shorting opportunities for techs and startups that are going to be destroyed as interest rates creep up.

Anybody carrying a lot of debt is going to get demolished.

Which is pretty much everybody these days.
Agree there are a lot of overly-leveraged companies out there, and some will bite the bullet for it. But for the most part, they'll end up refinancing somewhere in a reasonable range once benchmark rates settle down, and be perfectly fine.

Markers adjust, that's the whole point. Easy returns might be gone, but I think that has more to do with markets becoming more sophisticated and tech/data dependent than anything else. Efficiencies in the market have never been higher than they are today. Things will be alright in the long-term.
 

jaygreenb

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The aggressive monetary tightening launched by the Federal Reserve last year has brought an end to a “Golden age of investing’ that will force Wall Street traders to rethink how they allocate their portfolios, says Ralph Schlosstein, chairman emeritus at Evercore ISI.

“The last 40 years have kind of been the golden age of investing. I don’t think we are going to have that for the next 10 or 20 years,” Schlosstein said on Bloomberg TV Wednesday. “If you step back a little bit, we went through a 40-year period of time where rates were generally declining, longer rates, and they got extraordinarily low. I think that period of time has passed.”
Agree, anything that had major price increases tied to cheap debt will potentially have a tough time. To what extent and what time frame is the question. Forget where I saw the chart but S&P growth basically mirrored the increase in the money supply past few decades. Being able to get a risk free liquid 5%+ is going to change a lot of behavior and people will not have to chase appreciation and yield. The market needs to wash out all the overleveraged, non profitable and inefficient operators. Should of let it happen many years ago but here we are. Only thing I am unsure about is how long they can keep the charade going, Years ago I thought it would have happened a lot sooner.
 
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