OMG! OMG! We could see our first interest rake hike THIS SUMMER! A rise from 0.25% to 0.5% would absolutely kill the recovery and the stock market! Why? Because the Financial Media, RickyBoy, and Josh43 are all in unison on this one. I'm sure stevie-girl would agree too if she was still here. (In fact this one might bring her out of hiding). Also the stock market was down two out of the last three days.
It's all over! It's all over...
Dougster for Fed Chair!!
Imagine Dougster leading a session of the Fed Board. You'd have Stan Fischer (advisor of both Bernanke and Draghi) presenting charts and equations relating interest rates to inflation and full employment, with the other governors nodding in agreement. Then Dougster would go apeshit: "You mindless cock-sucking circle-jerk panty waists don't know anything about the economic boom."
From WSJ: "Ms. Yellen has signaled that the inflation backdrop is the key wild card in the months ahead.Though the job market is improving as the Fed hoped, inflation isn’t moving back toward its 2% objective."
I think Yellen will be another great Fed chair.
It is hard to do anything about busts once they start. But if we decline to support the bubbles, then the busts won't be as bad.
The Fed has to go to stable policies. Trying to mitigate the last bust was necessary. But going so far as to perpetuate the present bubble in order to help speculators is not good.
SJG
Any rate hike will only cause a short term blip in the market. When it happens our dollar will be stronger which bodes well for stocks domestically. Also, since a rising dollar makes it more expensive for foreign companies to do business with us, that will be one of the reasons the fed will do it ever so slowly so other countries can adjust as their economies expand. The world is in this together, so the ship always gets righted in a big hurry before too much damage.
My hope is we get a nice correction so I can find a nice opportunity to put more cash to work, but I'm not waiting for that to happen. I got another 15 years or so before I'm done working. Who cares? It's just noise anyway.
Ever heard the saying "buy the rumor sell the news"? Well it works the other way too, if the rumor is being sold vigorously then you can buy the news when it happens. The market has had a chance to see this rate hike coming a mile away.
I'm with meat here. It looks like the financial media is going into full fledged hype mood on the coming rate hikes which the market has known about forever. And it's feeding right into alot of people's confirmation bias - especially the mindless cock-sucking circle-jerkers of TUSCL. But it will present a great long term buying opportunity and there is absolutely no reason to bail unless your going to like retire tomorrow or something.
In the meantime there are some extreme undervalued interest rate plays out there.
^^^^^^Dougster makes a lot of sense with his last comment.
One of the themes behind my stock purchases last year was the inevitable rising interest rate environment. Turns out I had my head up my ass last year and the big investment that I made based on my thesis was not a good performer. I chose an insurance company (MFC on the TSX) and it mostly marked time for the entire year. With the divvy I think that I made about 7%-8% on MFC during 2014. I have not given up on my thesis. I continue to buy more of this stock for the trusts set up for my heirs. When interest rates finally do rise insurance companies, in particular, will make out like bandits in the night.
I am less sure than I was of the timing of the reversal of trends in interest rates. The 30+year bull market in bonds is a very, very tired market. I have been expecting the end of the bond bull market for about 3 years and I have been wrong. I pulled out all the money that I had in bonds when the US Treasury Dept. started shoveling bonds into the Fed's vaults. I missed another 5 years of the bond bull market but I am not complaining.......all that money that I formerly had in bonds went into equity markets in Canada and USA with most satisfactory results.
Lol@josh comparing himself to Stanley Fischer and the rest of TUSCL to Fed presidents. Sorry but you would have to do a little more than parrot your favorite political blog's party line.
Fischer is one of the smartest dudes on the planet (still going strong at age 70), and we're lucky to have have him as vice chair. He's on CNBC sometimes -- explains things well. Think he wants to raise rates soon, like you do.
The whack patrol (Rand Paul, Ron Paul, Ted Cruz) wants to "audit the fed" again. I'm sure Fischer/Yellen needs their help...
The U.S. Is an even more powerful machine! Either hop on board or leave the country and ex-patriate. Politically we are gaining strength globally, even though it is popular to bash the U.S. By liberal media. The constitution is like no other in the developed world, so get over any thoughts of how out of control government is and how current policy is ruining the future of America.
Free enterprise is gaining momentum across the globe, and the best way to capitalize on that is with governments who go along with policies advocating capitalism. 10-15 years from now we will see Dow jones likely over 40,000 or maybe 50,000 (time frame leaves a lot of room). The only issue is if you make $100k annually u will need to make $200k in the future due to inflated prices. If you neglect to invest today, you are saying to yourself you would rather find a job paying $200k in 10-15 years to keep up with your $100k lifestyle today. That's just nuts and crazy thinking to me....
Just the talk of it this week cause a 300 pt drop.
^^^^ and just as soon as anyone figured out it was just a bunch of hyperbole b.s., it bounces back up 300 points. All my positions soared today!
I love it when the market goes down on non-sense fears. Allows me to buy cheap.
Dougster, are you really Jim Cramer from Mad Money?
hmmm.
Absolutely DOOMED!