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  1. 3,108 Posts.
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    macro-economics.

    after you have a global induced recession from covid.
    pump it full of cash, you have people that are caged rats that want to get out. once they get out they spend spend spend.

    All that spending has triggered global inflation not seen before as usually it is isolated to a few countries at a time.

    Since then the central banks around the world are increasing cash rates which in turn increase all loan interest rates to try and subdue the spending. This is because if ur interest rate goes up you usually have less to spend on going out or random purchases.

    It also can mean, some flee from low earnings shares to shares that pay dividends and have a history of survival through tough periods. It also means some people sell out of stocks all together to ensure capital is not depleted over time and to ensure they have cash in the bank.

    hope this helps
 
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