Easy To Understand (not advice, dyor)
So let’s say you are the owner of a rental property
R(t) = the rents you receive on your rental property
(1+t)^t is the cost of borrowing
But now, new news has been released, and
The dominant employer in the area suddenly considers layoffs, R(t) is down, not only today, but the assumptions of future likelihood and predictability of your rental revenue is now called into question, and
Your mortgage’s interest rate on the rental property (which is floating), begins to increase, with prospects of even higher (1+i)^t in the future, and
Now, you try to sell your rental property to someone else on the day that this two pieces of information come to light. Good luck to ya.
This is pretty self-evident, right?
Guess what? You are Netflix, today, which is only a specific, albeit extreme version why the repricing of stocks is occurring. The Nasdaq 100, the ETF symbol QQQ is down 7.5% this week.
The Nasdaq 100, the ETF symbol QQQ is down 7.5% this week. If you have read these updates, then this article goes into further detail. It’s not as if this is news (link).