What’s really driving the economy—and how should investors think about it? In this podcast, John & Sam exchange perspectives on current events that are impacting our economy and influencing investment strategies. Trading Perspectives is hosted by Oakworth Capital Bank's Chief Investment Officer, John Norris along with Sam Clement, Associate Managing Director.
*Oakworth Asset Management is a registered investment advisor. All advisory services, including investment management and financial planning, are offered through Oakworth Asset Management, LLC, which is owned by Oakworth Capital Bank, member FDIC, Equal Housing Lender. Investment products and services offered via Oakworth Asset Management, LLC are independent of the products and services offered by Oakworth Capital Bank and are NOT FDIC INSURED, NOT BANK GUARANTEED, and MAY LOSE VALUE. The information, opinions, comments, statements, views or recommendations expressed should not be considered professional, tax or legal advice; or as an offer to buy or sell or to make or consider any investment or course of action. https://www.oakworth.com/ tradingperspectives@oakworth.com📄 Disclosures: oakworth.com/policy-center Member FDIC. Equal Housing Lender. Investments may lose value and are not bank guarantee.
Aug 23, 2023
Everyone knows lower interest rates are supposed to stimulate economic growth. If that is the case, the inverse must also be true. However, is that really the truth? After all, the Japanese have had manufactured low interest rates for almost three decades, and where has the growth been? The same could be said for the Europeans over the last decade or so. Shoot, even the American economy seemed to be weaker than it should have been with artificially low rates. This begs the counterintuitive question: are high interest rates really as bad as advertised?
In this week’s Trading Perspectives, Sam and John discuss the impact permanently higher interest rates might have on the economy. It might not be as bad as feared.