Aug 12, 2022
Interest rates affect stock, crypto assets, and real estate investments differently.
Why do interest rates matter when it comes to stocks and cryptos? Typically, higher interest rates tend to negatively affect earnings and stock prices (there are several exceptions to this). There are many reasons for this occurrence.
The most notable central bank in the world is the central bank of the United States, known as The Federal Reserve System (Fed). The interest rate trickles down and changes shape when different actors (banks, asset managers, funds, and businesses) engage in borrowing and lending interactions.
Generally, when interest rates rise, businesses and consumers cut back on spending because borrowing (a tenant of growth) is more expensive. This causes markets like the stock market to fall as earnings decline or contract. When interest rates drop, consumers and businesses increase their spending (growth is cheap again), causing stock prices to rise.
In the real estate market, a higher interest rate environment makes acquiring property more expensive which ultimately causes market activity to slow down. Furthermore, since investors with mortgages are required to pay interest, often their mortgages will increase, making them more expensive and less attractive options.
Investors should therefore maintain a pulse on the goings-on of interest rates as they will affect an investor's ability to borrow money affordably and grow their portfolio.
All Rights Reserved © Landa Holdings, Inc
Landa Holdings, Inc. ("Landa Holdings") operates the www.landa.app website (the "Site") and the mobile-based app (the "App"). Landa Holdings serves as manager to Landa App LLC and Landa App 2 LLC. From time to time, Landa Holdings may organize limited liability companies or series limited liability companies, such as Landa App LLC and Landa App 2 LLC, and will raise funds for these entities through the App by relying on offerings exempt from registration requirements pursuant to Regulation A under the Securities Act of 1933 (“Regulation A”). Such companies shall be collectively referred to herein as “Landa App”.
Neither Landa Holdings nor Landa App is a broker-dealer or an investment advisor. All securities-related activity is conducted through Dalmore Group LLC (“Dalmore”), a registered broker-dealer and member of FINRA/SIPC, located at 525 Green Place, Woodmere, NY 11598. You can review the brokercheck for Dalmore. Banking services are provided by Evolve Bank & Trust, Member FDIC. By opening a custody account on the App, you agree to Evolve Bank & Trust’s Custodial Agreement.
All securities (“Shares”) are being offered by one or more series (“Series”) registered under Landa App. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Past performance is no guarantee of future results. Investments such as those offered by Landa App are speculative and involve substantial risks to consider before investing, outlined in the respective offering materials and including, but not limited to, illiquidity, lack of diversification, and complete loss of capital. An investment in an offering constitutes only an investment in a particular Series and not in Landa Holdings, Landa App, or any of the underlying asset(s). investors should carefully review the risks located in the respective offering materials for a more comprehensive discussion of risks.
You should speak with your financial advisor, accountant, and/or attorney when evaluating any offering of securities. Neither Landa Holdings, Landa App, nor Dalmore makes any recommendations or provides advice about investments, and no communication, through this website or in any other medium, should be construed as a recommendation for any security offered on or off this investment platform. Nothing in this material should be construed as investment or tax advice, or a solicitation or offer, or a recommendation to buy or sell any securities. The Site and/or the App may make forward-looking statements. You should not rely on these statements but should carefully evaluate the offering materials in assessing any investment opportunity, including the complete set of risk factors that are provided as part of the offering circular for your consideration. We urge you to review the applicable offering circular, available here.
Disclaimers
Landa Holdings maintains this website for informational purposes only. All offerings of Series’ Shares (and information about each Series and its underlying property) are conducted exclusively on the Landa Mobile App.