Are Low Interest Rates Actually Good For Stocks?

Food for thought

How do proponents of the Fed model explain undervalued European equities? Europe has had negative interest rates for almost a decade. According to the low rate/high valuation theory, European stocks should be selling well above their average historical P/E multiples. But the fact is they have been undervalued relative to the U.S. market for almost a decade.

Because there is no guarantee that interest rates will continue to remain historically low, should the Federal Reserve raise rates in the near future the Fed model theory will be put to the test.

Small-cap winners galore

The big stock market winners share one common attribute: Near the beginning of the ascent of their shares, the companies offer revolutionary products or services, are market leaders in their respective industries, or both. Some big stock market winners that possessed the attributes outlined above are Netflix (NFLX), which we recommended to investors in October 2002; Intuitive Surgical (ISRG), which we bought and recommended in July 2004; (BIDU), which we bought and recommended in August 2006; and MercadoLibre (MELI), which we recommended to investors in October 2010. Get up-to-date small-cap stock picks from David Frazier, editor of Small-Cap Profit Confidential.
Click here

Smarter cryptocurrency investments

The stock market crash of 2008 was the catalyst for his journey into alternatives. And interestingly, it was the impetus behind the creation of Bitcoin and the blockchain technology behind it. Keene Little wasn’t ready to risk his money yet but he was very curious, so he began charting Bitcoin’s technical patterns. What finally convinced him to dip a toe into digital currencies was seeing that they followed familiar price patterns that could be analyzed and successfully acted on. Now he shares those insights with subscribers to the Crypto Wealth Protocol.
Learn more
4 / 4
Next Slideshow ❯

Leave a Reply