Like Everyone Else, Goldman’s Clients Are Asking About Rising Rates And The Impact On Stocks

May 19, 2018May 19, 20181 min read therealheisenberg

There were three things that captured investors' attention this week: emerging markets rising U.S. yields a close encounter of the populist kind in Italy The first two are inextricably linked. For our latest treatment of that link, see this link (get it?): "A Visual Guide To The Strong Dollar-EM- Fed Hike Causality Chain." One of the ironies inherent in the current backdrop is that there are a number of potential "circuit breakers" built into the self-regulating system that we a

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2 thoughts on “Like Everyone Else, Goldman’s Clients Are Asking About Rising Rates And The Impact On Stocks”

Konghaakon

May 19, 2018 at 8:44 pms Reply

CPB is the canary in the coal mine. What do KHC, PG, K, GIS, PEP, and MDLZ have in common? Billions of dollars of working capital deficits caused by both long and short term borrowings to buy back stock and make acquisitions at premiums based on earnings that are just about to get squeezed by higher distribution costs (think 2 or 3 basis points off gross margin) and an increase in commercial paper rates Look out below.
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