Here’s why elevated interest rates don’t have to mean a market slowdown.
Transcript:
CAROLINE WOODS: Do you think stocks can continue to rally if rates stay higher for longer?
NANCY TENGLER: Yeah I do. I mean, we saw it in the 90s. I also think, the market has kind of stopped paying attention. We’re I know that we still have volatility on press conference days, but in general the market is reacting much less violently than they were than it was early days. And it’s really more the bond market that brings concern. And that’s also, by the way, which I think brought the President and at all to postpone the tariffs.
It was the bond market, not the stock market. So we do think so because earnings continue to be strong. Guidance was decent this last quarter. Margins are healthy and we think that will continue to be the story because companies are in fact utilizing AI across their businesses. I saw a recent study, customer support human average. Each contact is $2.58, AI is $0.13, and customers are happier after the AI experience, probably because it’s quicker.
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