Go offline with the Player FM app!
Ask Fear & Greed: Why do markets react counterintuitively?
Manage episode 433914043 series 3375277
Listener Brian asks: Last Monday, the ASX tumbled but there was a lot of talk about "interest sensitive stocks" falling disproportionately relative to the index.
Given that interest rates have started to fall across the globe, and that the RBA's launch on that rate-cutting cycle appears (relatively) imminent, the reaction of the market seems totally counterintuitive (that stocks sensitive to rising interest rates would plummet when rates are about to fall). Why is it so?
Join Sean Aylmer & Michael Thompson as they answer listener questions.
If you have your own question for Ask Fear & Greed, get in touch via our website, LinkedIn, Instagram or Facebook!
Find out more: https://fearandgreed.com.au
See omnystudio.com/listener for privacy information.
3569 episodes
Manage episode 433914043 series 3375277
Listener Brian asks: Last Monday, the ASX tumbled but there was a lot of talk about "interest sensitive stocks" falling disproportionately relative to the index.
Given that interest rates have started to fall across the globe, and that the RBA's launch on that rate-cutting cycle appears (relatively) imminent, the reaction of the market seems totally counterintuitive (that stocks sensitive to rising interest rates would plummet when rates are about to fall). Why is it so?
Join Sean Aylmer & Michael Thompson as they answer listener questions.
If you have your own question for Ask Fear & Greed, get in touch via our website, LinkedIn, Instagram or Facebook!
Find out more: https://fearandgreed.com.au
See omnystudio.com/listener for privacy information.
3569 episodes
All episodes
×Welcome to Player FM!
Player FM is scanning the web for high-quality podcasts for you to enjoy right now. It's the best podcast app and works on Android, iPhone, and the web. Signup to sync subscriptions across devices.