Intermarket Analysis and Investing Quotes

“Banks lead the interest rate cycle. They feel the brunt of rising interest rates and benefit from their decline. When interest rates rise, the spread between their cost of capital and their sources of revenue-loans declines. This, in turn, exercises pressure on profit margins and profitability. In addition, rising interest rates tend to have a negative effect on demand for credit, causing it to slow down.”
― Michael E.S. Gayed, Intermarket Analysis and Investing: Integrating Economic, Fundamental, and Technical Trends

“The uncertainty of the employment outlook during periods of economic slowdown also forces prospective homebuyers to postpone their spending plans until future dates.”
― Michael E.S. Gayed, Intermarket Analysis and Investing: Integrating Economic, Fundamental, and Technical Trends

“Two economic sectors that are particularly sensitive to interest rate trends are the building and auto industries.”
― Michael E.S. Gayed, Intermarket Analysis and Investing: Integrating Economic, Fundamental, and Technical Trends

“The rise of interest rates implies an increase in the cost of money, which tends to exercise downward pressure on the profit margins, sales, and earnings of all industry groups. Some, however, are more sensitive to rate fluctuations than others.”
― Michael E.S. Gayed, Intermarket Analysis and Investing: Integrating Economic, Fundamental, and Technical Trends

“There are industry groups that are more sensitive to consumers’ spending than others and there are those which are most affected by interest rate fluctuations.”
― Michael E.S. Gayed, Intermarket Analysis and Investing: Integrating Economic, Fundamental, and Technical Trends

“Often, just a few stocks might lead the way and outperform the rest of the group. However, although some stocks might lag the initial strength of the group, in general they eventually catch up and follow the prevailing trend.”
― Michael E.S. Gayed, Intermarket Analysis and Investing: Integrating Economic, Fundamental, and Technical Trends

“When the Fed tightens and rates rise, the building industry suffers, and when the Fed is easing and rates decline, the housing market revives. Cyclical downturns are led by shrinking demand for durable goods—mainly, housing and autos.”
― Michael E.S. Gayed, Intermarket Analysis and Investing: Integrating Economic, Fundamental, and Technical Trends

“As a general rule, the stock market trend follows the lead of the bond market, which is sensitive to interest rate directions.”
― Michael E.S. Gayed, Intermarket Analysis and Investing: Integrating Economic, Fundamental, and Technical Trends

“When rates rise, bonds decline, and when rates fall, bonds advance.”
― Michael E.S. Gayed, Intermarket Analysis and Investing: Integrating Economic, Fundamental, and Technical Trends

“When interest rates move up, the stock market moves down, and vice versa. Investors should be fully aware of this relationship, as it is the most important factor to consider in assessing long-term trends in the securities market;”
― Michael E.S. Gayed, Intermarket Analysis and Investing: Integrating Economic, Fundamental, and Technical Trends

“The farmers say ... “What does Wall Street know about farming?” Wall Street knows more than all the farmers put together ever knew, with all that the farmers have forgotten. It employs the ablest of the farmers, and its experts are better even than those of our admirable and little appreciated Department of Agriculture, whose publications Wall Street reads even if the farmer neglects them. –William P. Hamilton, 1925”
― Michael E.S. Gayed, Intermarket Analysis and Investing: Integrating Economic, Fundamental, and Technical Trends

“Since we are the prisoners of what we know, often we are unable even to imagine what we don’t know…Man, given the proper initiative and freedom to act, has repeatedly found alternatives to ambiguity and doom.”
― Michael E.S. Gayed, Intermarket Analysis and Investing: Integrating Economic, Fundamental, and Technical Trends

“act, has repeatedly found alternatives to ambiguity and doom. – Walter Wriston (Former Chairman of Citicorp)”
― Michael E.S. Gayed, Intermarket Analysis and Investing: Integrating Economic, Fundamental, and Technical Trends

“Since we are the prisoners of what we know, often we are unable even to imagine what we don’t know…Man, given the proper initiative and freedom to”
― Michael E.S. Gayed, Intermarket Analysis and Investing: Integrating Economic, Fundamental, and Technical Trends