ilmscore | Prediction Details
"because remember Kathy Wood's funds invest in startups and if these startup valuations go up her fund benefits as well now think about this from the perspective of an Institutional Investor if you're an Institutional Investor and you can borrow money from the bank at 2 or 3% then you can lend it to a company and now this company the startup really needs to only return you five or 6% for you to get a great rate of return on your money but if now the bank says that you have to borrow money at 7 or8 8 or 9% now you need a 15 or 16 or 177% return from a startup in order to justify an investment to make that money that means number one you're going to be borrowing less dollars and number two you're going to be much pickier when you invest your money and you're going to require lower valuation so you get a higher rate of return on your money and this is where Kathy Wood is advocating for the lower interest rates to stimulate and spur more investment into these startups"
By Minority Mindset | October 24, 2024 | Pending
From video
Cathie Wood: Feds NEED To Cut Interest Rates To Prevent An Economic Crisis 00:06:57 - 00:07:53
Interpreted Prediction
Kathy Wood advocates for lower interest rates because they encourage institutional investors to increase investments in startups, driving up startup valuations and benefiting her funds. Conversely, higher rates make borrowing and investing in startups less attractive.

Prediction Details

Topic
Startup Investment

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