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A comment on The QT Timebomb. Parent comment

Re:The QT Timebomb by rvbissell on Wednesday January 19, 2022 @11:09PM (#30004480)
> Higher rates -> reduced accessibility of personal credit -> lower spending -> lower corporate revenue -> higher cost of borrowing -> higher cost of debt service -> lower profits -> stock price

I think it's simpler than that. An absurd example: if T-bills suddenly start yielding 12%, capital will flee from stocks to T-bills.

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Re:The QT Timebomb by dstroot on Wednesday January 19, 2022 @11:24PM (#30004603)
This. As bond rates rise capital moves out of stocks over to bonds. Bonds are higher in the capital structure as well. When bond rates go absurdly low capital moves into stocks (as we have seen).
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Re:The QT Timebomb by DSingularity on Wednesday January 19, 2022 @11:41PM (#30004737)
Will they ever yield that?!
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Re:The QT Timebomb by danuker on Thursday January 20, 2022 @11:25AM (#30010984)
Doesn't matter. People don't invest exclusively in one of stocks or bonds, but diversify. A higher interest rate might make bonds slightly more attractive on a continuum.
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Re:The QT Timebomb by icedchai on Thursday January 20, 2022 @12:14AM (#30004968)
Bring back the 80’s.
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