Coverage Universe - Weekly Price Changes Sept 1-7, 2018
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Normalization Phase Winding Down–Earnings: AW, PBH, CGX, GEI, MRT
US and Canadian central banks have been on the same policy track since late 2013. If they are not raising interest rates they are talking about it. They make no mention of how high rates really need to go, or even estimates of how long it will take. The level of interest rates is integral to the stock valuations.
Determining the future value of a sum of money depends on the rate of earnings and the length of time the money is able to earn this rate between two dates. This is the numerical expression for measuring rates of return on investments. One key number in the math formula is interest rates. Variances in interest rates change the final value. THe length of time of also important, when markets don't know the length of time it will take interest rates to rise, this adds uncertainty.
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