EPS drives stock prices. EPS will fall from the 25 basis points rise for many companies (especially the highly geared ones, now includes TLS which has been rising in gearing to pay 120% of EPS to DPS).
Another 25 basis points and yes, the 'ice skating' is on thinner ice.
I worked in Risk Management in one of the major banks as an executive before I retired. I enjoy punting in the market. It keeps me busy. Can live from Term Deposits but where would be the challenge?
Agree with your view yesterday - if rates rose to 12%, the economy will hit a brick wall.
