Aldric Chen
Mar 25, 2024

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Inflation and interest rates may play see saw with each other, but I do see how the both can become a base hurdle rate for investment evaluation when they get too high.

For instance, when inflation hits 10%. Real investment return must go beyond 10%.

For example, when interest rates (cost of borrowing) goes above 10%. The returns on equity must go beyond 10% for profitability to be possible.

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Aldric Chen
Aldric Chen

Written by Aldric Chen

Singaporean. 24x Top Writer (as of June 2023). Eavesdropper. I uncover interesting stories around me.

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