[simplotek]

> Now rates are up and the smart money is moving elsewhere.

That would only explain drops in future investments, but we're seeing profitable companies with astronomical revenues from their cash cows diving into a massive firing spiral.

More importantly, growing interest rates is not exactly the definition of a downturn.

[disgruntledphd2]

Interest rates go up, future revenue becomes less valuable, companies lay people off to add to their margins to preserve their valuations.

[simplotek]

> Interest rates go up, future revenue becomes less valuable (...)

I don't think this is true at all. Central banks hike interest rates to limit and reign in inflation. It's the exact opposite of what you claimed.

[disgruntledphd2]

In terms of people deciding to invest in a company, high interest rates definitely make future revenue less valuable in terms of discounted cash flow models.

[extheat]

Growing interest rates propagate throughout the economy. The goal of higher interest rates (aside from debt & borrowing becoming substantially more expensive) is to bring down demand and slow the economy.