05/10 4:11P (DJ) DJ MARKET TALK: Aren’t Higher Rates Already Priced In?
(Dow Jones) Maxim strategist Barry Ritholtz is amazed how many people believe rising interest rates and high oil prices are to blame for stock weakness. “That’s long baked into the price action,” he says. “Its absurd to think markets are so rearward looking.”
So what does Ritholtz blame the recent fall on? The Iraq war, which he calls a “mess”, the vulnerability of President Bush, a potential backlash against U.S. companies that could hurt sales, and Greenspan’s warning on deficits, which Ritholtz says means taxes are going higher.