6 Comments

1. We were scrambling to lock in a 2.6% mortgage in early 2021 because it was unlikely that rates would be that low again for quite a while. Millions of refinancing homeowners turned out to be the smart money.

2. I am baffled that the banks were making themselves so illiquid with long-term debt. While I had some aggregate bond fund in my portfolio in 2020-21, there was also TIPs, stable value (3 year duration with insurance company hedging of interest rate risk), and just plain cash. The cash paid 0.01% interest, but I didn't see anywhere to put it that did not carry significant interest rate risk so I waited until Q3 and Q4 2022 to start deploying that in short term bond funds, CDs etc. I think it is the difference of looking long-term instead of focusing on quarterly and annual profit statements.

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Rare as a hound's tooth: concise, accurate, well written and sans agenda - well done!

Allison, my aim is true.

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Allison , you’ve made a good point.

I like your reasoning, and your writing style . Bloody good. Thanks Allison 👏👏

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Just got me thinking about your movie analogy. Is the data (and the tools we have for that matter) from the last few decades still useful.

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„Low rates were what made Silicon Valley Silicon Valley.“

Actually the best and most successful companies out of Silicon Valley were founded in a higher rates environment.

(Learned that from the all in podcast 2 or 3 episodes ago... I probably could find the source ... will do if you guys are asking ;-) )

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Yes in the 80s they were quite high relatively. I believe the mantra that more expensive money makes better companies is often true.

https://advisor.visualcapitalist.com/us-interest-rates/

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