Listener Brian asks: Last Monday, the ASX tumbled but there was a lot of talk about "interest sensitive stocks" falling disproportionately relative to the index.

Given that interest rates have started to fall across the globe, and that the RBA's launch on that rate-cutting cycle appears (relatively) imminent, the reaction of the market seems totally counterintuitive (that stocks sensitive to rising interest rates would plummet when rates are about to fall). Why is it so?

Join Sean Aylmer & Michael Thompson as they answer listener questions.

If you have your own question for Ask Fear & Greed, get in touch via our website, LinkedIn, Instagram or Facebook!

Listener Brian asks: Last Monday, the ASX tumbled but there was a lot of talk about "interest sensitive stocks" falling disproportionately relative to the index.
Given that interest rates have started to fall across the globe, and that the RBA's launch on that rate-cutting cycle appears (relatively) imminent, the reaction of the market seems totally counterintuitive (that stocks sensitive to rising interest rates would plummet when rates are about to fall). Why is it so?
Join Sean Aylmer &amp; Michael Thompson as they answer listener questions. If you have your own question for Ask Fear &amp; Greed, get in touch via our <a href="https://www.google.com/url?q=http://fearandgreed.com.au&amp;sa=D&amp;source=calendar&amp;ust=1723898223048423&amp;usg=AOvVaw1snlUlrdoe3pjkntOBvf7o">website</a>, <a href="https://www.google.com/url?q=https://www.linkedin.com/company/fear-and-greed&amp;sa=D&amp;source=calendar&amp;ust=1723898223048423&amp;usg=AOvVaw3lBwm7MeMyjm-KbTbV9V6L">LinkedIn</a>, <a href="https://www.google.com/url?q=https://www.instagram.com/fearandgreedpodcast/&amp;sa=D&amp;source=calendar&amp;ust=1723898223048423&amp;usg=AOvVaw20QLQOvgYfxrbN_yfFSOrt">Instagram</a> or <a href="https://www.google.com/url?q=https://www.facebook.com/FearAndGreedPodcast&amp;sa=D&amp;source=calendar&amp;ust=1723898223048423&amp;usg=AOvVaw2tGXLZpwuv-pE29VTi4PJy">Facebook</a>!

Daily business news for people who make their own decisions, with business journalist Sean Aylmer and Michael Thompson. Find out more at https://fearandgreed.com.au

Daily business news for people who make their own decisions, with business journalist <a href="https://www.linkedin.com/in/sean-aylmer-9922068/" data-saferedirecturl="https://www.google.com/url?q=https://www.linkedin.com/in/sean-aylmer-9922068/&amp;source=gmail&amp;ust=1689199223540000&amp;usg=AOvVaw0wu3ezGEfBZFYspJbTTaYL">Sean Aylmer</a> and <a href="https://www.linkedin.com/in/mcwthompson/" data-saferedirecturl="https://www.google.com/url?q=https://www.linkedin.com/in/mcwthompson/&amp;source=gmail&amp;ust=1689199223540000&amp;usg=AOvVaw08pZ8jZ88rHJgCfbHkTr5k">Michael Thompson</a>. Find out more at <a href="https://protect-au.mimecast.com/s/7AmQCOMxmAtl5q0qiE-KY7?domain=fearandgreed.com.au/" data-saferedirecturl="https://www.google.com/url?q=https://protect-au.mimecast.com/s/7AmQCOMxmAtl5q0qiE-KY7?domain%3Dfearandgreed.com.au/&amp;source=gmail&amp;ust=1689199223540000&amp;usg=AOvVaw1DLq_FuqjEt3HC-ZK1704H">https://fearandgreed.com.au</a>

Fear and Greed is Australia's most popular business podcast.

FEAR & GREED | Business News

Daily business news for people who make their own decisions, with business journalist <a href="https://www.linkedin.com/in/sean-aylmer-9922068/">Sean Aylmer</a> and <a href="https://www.linkedin.com/in/mcwthompson/">Michael Thompson</a>. Find out more at <a href="https://protect-au.mimecast.com/s/7AmQCOMxmAtl5q0qiE-KY7?domain=fearandgreed.com.au/">https://fearandgreed.com.au</a>

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