Macro Minutes: Market Impact on Higher for Longer Interest Rates

In this short Macro Minutes video, Fisher Investments’ Capital Markets Research Analyst Adam Wiener discusses our outlook on interest rates, the affordability of interest costs for corporations and consumers, and what higher for longer rates may mean for markets.

By Fisher Investments, 10/12/2023

Key Points

The economy has held up better than feared, reducing pressure on the Fed to cut rates immediately, which supports our view that long-term interest rates remain rangebound into next year.
Earnings have grown at a faster rate than interest costs and debt, keeping Interest costs manageable for most companies.
History shows that equities can do well when interest rates are higher than they are today, and we expect this nascent bull market to continue amidst the current rate environment into 2024.