How many businesses are equity funded in the first place?
We did not have capital to start our business.
Most small businesses starting from zero can't get capital in the first place (excluding personal funds, family funds which aren't usually charging interest tied to the Fed benchmark)
Those tech companies that do get tons of capital despite negative value are somewhat unique and for sure interest rates will eventually affect that. Valuations are already starting to come back to at least the Stratosphere ;)
Just like you would not buy a house now, you wouldn't start a business.
I'm talking statistically, not like a rule. ZERO relative to lower rates.
You mean wind, solar and nuclear power? I mean they are capital intensive because the operational costs are dwarfed by the initial investment. With coal and gas, the fuel is an ongoing and high expense compared to the power plant itself.
Wind and solar are only interesting in very small solutions (think small sailing boats), nuclear is super energy intense to build! Hydro is the ONLY balanced investment but all good locations are already in use.
This time around interest is lagging inflation by atleast 1 year.
In the 70s the rate and salaries increased BEFORE the inflation occured = inflation was rate/salary driven and because debt level was lower.
Today salaries are not increasing 10% per year for most people.
So I actually think the interest rate hike increases the scarcity inflation eventually since energy production need low interest loans to build new sources.
The only sure thing about the hike is that ZERO new companies will be created, for good and for bad.