With investors digesting key reports regarding inflation and their ultimate impact on monetary policy decisions, several optimists found a seeming opportunity in LendingTree (TREE), a popular online lending marketplace. Notably, the consumer price index for June came in lower than economists anticipated. However, the consensus among experts is that prices haven’t declined enough for the Federal Reserve to forego interest rate hikes.
At first glance, the prospect of higher interest rates doesn’t bode well for many if not most publicly traded enterprises. After all, if borrowing costs rise, such a framework crimps individual corporations’ expansionary efforts. Subsequently, companies often have little choice but to initiate mass layoffs to protect their bottom line. Preservation, then, rather than outright financial performance guides the narrative.
