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MoBuffs

Joined: 10/1/14 Posts: 697
Likes: 449


You Need To Do Your Homework.....


The stock market and many businesses have benefitted big-time from historically-low (zero for a long time!) interest rates over the last eight years. The Fed is now raising rates, pulling away the punch bowl from the liquidity party. They are going to continue to raise rates this year. It takes about six to nine months for rate hikes to filter through the economy. The Fed as you know (hopefully) has a terrible record on achieving soft landings. This reality will mean slower growth and lower stock prices as these rate hikes begin to kick in. No one knows when we start to experience the negative impact of higher rates but trust me it's coming. In all fairness, Fed tightening would be problematic for Democrats or Republicans. The fact Republicans chose to enact their tax package now when the economy is healthy rather than waiting for the inevitable slowdown has left many economists - who are much smarter than you or me - scratching their heads. When you have a moment, research the Fed's record since World War Two on achieving "soft landings". Almost all tightening cycles have resulted in much slower growth or recessions. Be careful out there!





(In response to this post by GeorgiaBuff)

Posted: 01/18/2018 at 7:58PM



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Current Thread:
 
  
Economists credit Trump, not Obama, for booming economy -- GeorgiaBuff 01/18/2018 6:34PM
  Everyone but Fox, huh? ** -- 241Volcano 01/18/2018 7:19PM
  You Need To Do Your Homework..... -- MoBuffs 01/18/2018 7:58PM
  Global flows keeping long end of curve low -- GeorgiaBuff 01/18/2018 7:37PM
  The study refers to the economy, not the market -- GeorgiaBuff 01/18/2018 7:23PM
  How about from 2009-2016? ** -- 241Volcano 01/18/2018 6:57PM
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