{"id":9309,"date":"2016-01-07T15:39:34","date_gmt":"2016-01-07T20:39:34","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=9309"},"modified":"2016-01-07T15:39:34","modified_gmt":"2016-01-07T20:39:34","slug":"higher-rates-and-the-absence-of-qe-312","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=9309","title":{"rendered":"Higher Rates and the Absence of QE (3\/12)"},"content":{"rendered":"<p><span style=\"font-size: medium;\">Rates are going up, perhaps slowly, but still going up. Lower rates didn\u2019t help the general public, but they definitely helped corporate America.<\/span><br \/>\n<span style=\"font-size: medium;\"><!--more-->Companies that have a lot of debt may have to refinance at higher rates. <\/span><br \/>\n<span style=\"font-size: medium;\"> M&amp;A activity, which has greatly helped the market, could dry up (2015 was a record year) if companies no longer have access to cheap money to fund the activity. M&amp;A decreases the float of the overall market, and therefore helps the market rally.<\/span><br \/>\n<span style=\"font-size: medium;\"> Stock buybacks have greatly helped the market over the last few years. Companies borrow money, and then turn around and buy their own stock. Higher rates won\u2019t stop this, but it\u2019ll slow it down. <\/span><br \/>\n<span style=\"font-size: medium;\"> QE, or quantitative easing, has also been a big supporter of higher stock prices. Here\u2019s an image from Pension Partners showing the market\u2019s performance since 2008, with and without QE. <\/span><br \/>\n<img src=\"http:\/\/leavittbrothers.com\/blog\/i\/qe010716.png\" alt=\"\" \/><br \/>\n<span style=\"font-size: medium;\"><strong>Agree\/Disagree? Comment below. And click <a href=\"http:\/\/www.leavittbrothers.com\/email-subscribe.cfm\">here<\/a> to join our email list to get reports just like this sent directly to you.<\/strong><\/span><br \/>\n<img loading=\"lazy\" src=\"\/images\/space.gif\" border=\"0\" alt=\"\" width=\"728\" height=\"1\" \/> <a rel=\"nofollow\" href=\"http:\/\/www.leavittbrothers.com\/redirect.cfm?affID=5230\"><img src=\"http:\/\/leavittbrothers.com\/banners\/lb-468x60-1.gif\" alt=\"\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rates are going up, perhaps slowly, but still going up. Lower rates didn\u2019t help the general public, but they definitely helped corporate America.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/9309"}],"collection":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9309"}],"version-history":[{"count":0,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/9309\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}