|Dow Jones & comments from the Very Stable Genius (click to make picture bigger)|
|Dow Jones, long-term (click to make picture bigger)|
Meanwhile, short-term interest rates are climbing to around 2% (longer-term rates are climbing as well), after a decade of free credit - i.e. almost interest-free leverage, margin investing, corporate buybacks, corporate debt, consumer debt, auto loans, mortgages... That is, higher rates will be a hurdle to the leveraged investors in stocks, the indebted companies's shares, and the companies' customers - in the end: the consumers, who are leveraged as well!
Libor USD (click to make picture bigger)