The David Lin Report · Tuesday, June 30, 2026
Sam Burns argues that potential interest rate hikes will have a limited impact on both the stock market and consumers due to lower overall leverage in the private sector compared to previous cycles like 2005-2006. AI-related spending is also noted as being largely insensitive to small rate changes.
“Uh, I think for the stock market it's probably a pretty mild impact just because I don't think anyone really thinks rates are going to go up a lot.”
“Um, and therefore, uh, it's just not going to have a big impact on the market and particularly because, um, a lot of the, you know, the the things that are holding up the market, you know, the tech spending is really not sensitive to rates.”
“Uh, most of that is equity financed one way or another. And if there is borrowing, um, it's, you know, uh, it's going to it's going to happen either way. Uh, it's not really going to be affected much by a a small change in rates.”
“Consumers might feel it a little bit if the rates go up, but again, you know, rates aren't that high right now, and another 50 basis points at most just isn't going to move the needle that much.”
“U particularly because the the private sector consumers are not that highly leveraged. they don't have a huge amount of debt relative to income or assets in aggregate, um like they did say in 2005 2006 for instance.”