As interest rates go up, the fortunes of tech companies fall. Money chases higher yields. When interest rates are near zero, investors can gamble in tech companies that aren’t yet turning a profit and can hope they found a unicorn. When interest rates go up, profits become more important because it becomes easier to earn more than zero percent interest with low risk.
One of the goals of higher interest rates is to reduce spending by reducing employment. CEOs are planning on cutting jobs. Remote workers may be the first to go. This is nothing new. People who are more visible to supervisors are first in mind and perceived to be more productive and more valuable.
It is likely and/or extremely likely that remote workers will be laid off first, according to 60% of 3,000 managers polled by a presentation software provider.
If this is the beginning of the end of the work-from-home trend, as the following article suggests, then Covid boomtowns such as Boise, Coeur d’Alene, Rapid City, Cabo San Lucas, etc. may be the first to suffer from a reversal in movement and bigger downturn in real estate values than other cities.
Contact Deepak Malhotra if you need help with real estate investing. Even if you are not looking in Cheney, Medical Lake, Airway Heights, or the Spokane area, mentoring services or referrals can be provided.