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RE: LeoThread 2025-07-01 12:43

in LeoFinance3 months ago

Part 2/10:

The week began with concerning news as the S&P 500 experienced its worst week in nearly a month. The pair delved into the implications of rising short-term interest rates, suggesting a correlation to increasing long-term rates. While rising rates create uncertainty within the stock market, Frankel highlighted that banks might actually benefit from this scenario. He explained that banks typically prosper when long-term rates rise, as this widens the spread between what they earn on loans and what they pay on deposits. However, sectors like real estate investment trusts (REITs) and utilities might face challenges as investors shift toward lower-risk, higher-yield investments like treasury bonds. Frankel emphasized that despite short-term fluctuations, these conditions might present strategic buying opportunities for investors.