market not sharing wall st optimism, page-38

Rates have to come down now unless you want our stock market to half, which is probably not a bad idea to get some cheap stocks. The higher our rates go the more attractive for many investors to move out of stocks into interest bearing deposits. Why would anyone leave money in shares returning smaller and small returns, in some cases now negative when you can get much higher returns elsewhere with far greater safety? That’s why our RBA must keep a close eye on what’s happening now, not just what happened last year. If they increase them too far our markets will drop like a stone.