Posted by & filed under Governments & Regulators, Growth & Valuation, Market Analysis, Personal Finance.

Description: Warren Buffett believes interest rates are critical in determining stock valuations. The Dow Jones Industrial Average plunged more than 1,300 points in two days as investors worried about the negative effects from the rising interest rate environment. In a 2017 interview video clip found using CNBC’s Warren Buffett Archive, the investor explained why rates matter so much for investors.

Source: CNBC.com – video report

Date: Oct 11, 2018

Link: https://www.cnbc.com/2018/10/11/warren-buffett-on-why-interest-rates-matter-so-much-for-investing.html?yptr=yahoo

Questions for discussion:

  • Summarize the relationship between interest rates and investing, according to Warren Buffett?
  • Does this thinking hold up well in todays markets?
  • What advice do you think Buffett would be giving investors at this time?

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