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ProfessorGAC

(74,154 posts)
15. Speaking Of That...
Fri Aug 22, 2025, 12:20 PM
Aug 22

...why would already hyperinflated tech stocks go up because interest rates may fall?
A company like Meta has a D/E of 0.25 or so. Meaning they have no desperate need for cash. Nvidia is at 0.12, and they have YTD free cash flow of over $60 billion.
It makes no financial sense that cheaper money would drive up the price of stock of companies that don't need loans.

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1 members have recommended this reply (displayed in chronological order):

Of course a rate cut will be at least a temporary boon for the markets, D. Spaulding Aug 22 #1
What comments? BoRaGard Aug 22 #2
here ya go TheProle Aug 22 #3
Thanks.....I should have posted this. a kennedy Aug 22 #11
Powell is caving to trump's demands Fullduplexxx Aug 22 #5
This message was self-deleted by its author Fullduplexxx Aug 22 #4
Krasnov wants rates lowered to 1% gab13by13 Aug 22 #6
I think it's to boost his $100m investment in bonds. ananda Aug 22 #20
I don't think it is because he is afraid of getting removed. The only thing Powell said we need to review interest lostincalifornia Aug 22 #7
Only the fools on Wall Street edhopper Aug 22 #10
They are not fools, they are manipulators IMHO. lostincalifornia Aug 22 #14
Or both edhopper Aug 22 #18
Speaking Of That... ProfessorGAC Aug 22 #15
exactly edhopper Aug 22 #19
We're gonna miss Powell, but it is probably time -- as he indicates -- to cut short-term rates. That's not caving to Silent Type Aug 22 #8
This won't help the Economy edhopper Aug 22 #9
Sound and fury signifying nothing. Scruffy1 Aug 22 #12
Ding ding ding. Correct answer yourout Aug 22 #13
Maybe Powell got the top secret medical report. usonian Aug 22 #16
Then that begs the question, what does will Peter Theil tell JD madinmaryland Aug 22 #21
Good question. It's all planned, and has been for some time. Details below (not even at 11) usonian Aug 22 #22
Humpty Dumpty sat on the wall...... Lovie777 Aug 22 #17
Making up for the losses through the week. Emile Aug 22 #23
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