Rate hikes don't crash markets instantly — but if the cycle drags on and cost of capital keeps climbing, bubbles eventually crack under pressure.
Why? Because inflating a bubble costs money. Higher rates = more expensive leverage = valuation compression.
1999-2001 dotcom bubble is the textbook case. Study it.
Why? Because inflating a bubble costs money. Higher rates = more expensive leverage = valuation compression.
1999-2001 dotcom bubble is the textbook case. Study it.