As I awoke this morning the Dow futures were down 1,000 points. This is not a real big deal yet, but may portend the great collapse that many doomsayers have been predicting for years. I believe that someday all markets tend to find their true value, devoid of hype, over optimism and sheer greed.

An hour after the markets opened the vacuum had subsided. The reaction seems to be the worldwide financial pessimist realization that China IS REALLY in trouble due to major slowdowns in exports, a housing bust due to extreme overbuilding and the ensuing panic the US experienced just a decade ago.

Greece maybe ejected from the European Union, Spain, The UK all suffering pain and pessimism is growing. The financial markets don’t like the unknown. Fear, when born is the harbinger of PANIC.

How will this affect interest rates and fixed rate investments like cell tower leases? My take is that interest rates will rapidly rise and this will affect the fixed rate cell site leases as these are fixed rates (adjusted minimally by contract escalations). As interest rates rise, fixed rate securities will go down. It is just not the mathematical recalculations that may make these a losing proposition, but markets (investors) do not like the unknown and may choose to sit this one out.

Andrew G. Kellerman’s financial experience includes: stocks, bonds, commodities, insurance, options, real estate, mortgages, cell tower lease sales and telecom financial consultant dealing with many Fortune 500 companies., Inc. Initial consultation is free and can save or make you lot of money by helping you make the right decision. 760-470-1782 or Email