We explore six impacts of higher interest rates on housing, capital projects, stock buybacks, excess returns for stocks, bonds, and other asset classes, and individual opportunity costs.Topics covered include:<ul><li>Where current interest rates stand</li><li>Central banker predictions for how long cash yields will stay this high</li><li>Why housing is the least affordable since the early 1980s</li><li>Why new apartment building construction has collapsed</li><li>What has been the excess return for stocks, bonds, and other asset classes when interest rates are higher and lower</li><li>Why there will be fewer stock buybacks and how that can impact earnings per share</li><li>Which alternative investments do better when short-term interest rates are higher</li><li>Why financial opportunity costs have increased and how that should impact our investment and other financial decisions.</li></ul>Sponsors<a href="https://www.madisontrust.com/david?utm_source=money+for+the+rest+of+us&utm_medium=podcasts&utm_campaign=self-directed+ira&utm_id=money+for+the+rest+of+us" rel="noopener noreferrer" target="_blank">Madison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo Code</a><a href="https://netsuite.com/david" rel="noopener noreferrer" target="_blank">NetSuite – Get your free KPI checklists</a>Insiders Guide Email NewsletterGet our&nbsp;<a href="https://moneyfortherestofus.com/insiders-guide/" rel="noopener noreferrer" target="_blank">free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter.</a>Show Notes<a href="https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20230920.pdf" rel="noopener noreferrer" target="_blank">Summary of Economic Projections—The Federal Reserve</a><a href="https://www.wsj.com/real-estate/the-apartment-market-is-hitting-a-construction-lull-b85025ae" rel="noopener noreferrer" target="_blank">The Apartment Market Is Hitting a Construction Lull by Will Parker—The Wall Street Journal</a><a href="https://fred.stlouisfed.org/series/MORTGAGE30US" rel="noopener noreferrer" target="_blank">30-Year Fixed Rate Mortgage Average in the United States—FRED Economic Data</a><a href="https://www.wsj.com/economy/consumers/americans-are-still-spending-like-theres-no-tomorrow-6a1d307" rel="noopener noreferrer" target="_blank">Americans Are Still Spending Like There’s No Tomorrow by Rachel Wolfe—The Wall Street Journal</a><a href="https://www.aqr.com/Insights/Research/Alternative-Thinking/Honey-the-Fed-Shrunk-the-Equity-Premium" rel="noopener noreferrer" target="_blank">Honey, the Fed Shrunk the Equity Premium by Portfolio Solutions Group—AQR</a><a href="https://www.ft.com/content/f6f59092-7ff5-4095-ba25-084bcc298c24?shareType=nongift" rel="noopener noreferrer" target="_blank">Companies ease off on share buybacks as rising interest rates push up costs by Nicholas Megaw—The Financial Times</a>Related Episodes<a href="https://moneyfortherestofus.com/384-commodity-supercycle/" rel="noopener noreferrer" target="_blank">384: Has a Commodities Bull Market Supercycle Started? If So, How Do You Invest in It?</a><a href="https://moneyfortherestofus.com/435-rent-or-buy-a-house/" rel="noopener noreferrer" target="_blank">435: Is It Better to Rent or Buy a House?</a><a href="https://moneyfortherestofus.com/448-interest-rates-jackson-hole-symposium/" rel="noopener noreferrer" target="_blank">448: Where Are Interest Rates Headed Next? Insights from the Jackson Hole Symposium</a>See Privacy Policy at <a href="https://art19.com/privacy" rel="noopener noreferrer" target="_blank">https://art19.com/privacy</a> and California Privacy Notice at <a href="https://art19.com/privacy#do-not-sell-my-info" rel="noopener noreferrer" target="_blank">https://art19.com/privacy#do-not-sell-my-info</a>.

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How Higher Interest Rates Alter Our Financial Blueprint

Money For the Rest of Us