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Rising rates curb demand but won't fix oil supply or geopolitical issues, says expert.

Analyst Insights
17 Oct 2026
Seeking Alpha
View Source
Bullish
Rising rates curb demand but won't fix oil supply or geopolitical issues, says expert.

Rida Morwa explains that while raising interest rates reduces demand and borrowing, it cannot solve critical supply issues like oil production or geopolitical conflicts in the Middle East. Unlike the late 1990s when rate hikes occurred amid strong GDP growth and low unemployment, today's hikes happen during slow growth and weak consumer sentiment. Inflation, especially from oil prices, may persist until geopolitical tensions and infrastructure constraints improve. Investors are advised to consider defensive, high-yield stocks to navigate this challenging environment.

As of Oct 17, 2026 21:41 WIB, Realty Income Corp (O) on Pluang shows resilience with a price of USD 56.08 and a 1-day gain of 0.95%. The stock's dividend yield stands at 5.86%, reflecting its appeal as a high-yield defensive investment amid current economic challenges. Pluang data also indicates strong buying interest with 90% of order activity favoring purchases, supporting the narrative of income investments gaining favor in uncertain times.

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