Nov 1, 2018
Welcome to the Broken Pie Chart Podcast Episode 11. In this episode Derek Moore discusses how changes in interest rates affect not only obvious things like car loans and home loans but also potential stock market and stock valuations. How does a higher discount or interest rate change the present value of earnings?
Key Takeaways:
- • How Do Higher Interest Rates Potentially Affect Stock Valuations?
- • What is the Discount Rate?
- • How Do Interest Rates Affect the Value of Future Earnings or Cash Flows from Companies?
- • How Do Interest Rates Affect the Present Value of Payments?
- • Why Net Present Value Changes Depending on Higher Discount or Interest Rates
- • Comparing the Value of Future Earnings Across Various Interest Rates
- • Difference in Home and Car Loan Payments Depending on Interest Rates
- • Fundamental Analysis and Interest Rates
- • What is Free Cash Flow?
- • How the Fed Keeping Rates Low Encouraged Investments That Otherwise Wouldn’t Qualify
- • Interest Rates Rising Effect on Bonds
Mentioned in this Episode:
Broken Pie Chart Book by Derek Moore https://amzn.to/2MibTSk
Buffett Indicator https://razorwealth.com/the-buffett-indicator-explained/