That's my thought based on the following facts I have learnt during my time in the market:
(i) A rising interst rate reduces bond prices
(ii) A rising rate reduces share prices due to an increase in discounting rate
(iii) A rising rate increases interest expense
The Property Problem
To summarise, there are many local funds leveraged to the hilt during the era of low interest. A group of them are property workshops that have attracted many "wanna get rich" people. The idea is simple- (a) buy a property, (b) max the leverage pay the low interest of 1.8-2%, (c) get rental yield, pocket the difference of interest (c) and (d) while waiting for your property to appreciate, (e) repeat Step (a) to (d) by buying another property.
Here is the problem, the Fed's hike is creating (b) a higher interest expense while (c) is not rising fast enough. It will come
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