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The rates are too damn high!


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2018 Dec 17, 3:56am   1,933 views  8 comments

by MisterLefty   ➕follow (1)   💰tip   ignore  

All eyes will be on the Federal Reserve meeting midweek, as bulls pin their hopes on some dovish words, if not a pause in the rate-hike playbook, to lure buyers back in to this reeling stock market.

It’s almost Christmas, after all.

But one way or another, there will be fireworks, according Chris Puplava, CIO at Financial Sense Wealth Management, who says the powwow will likely end the consolidation we’ve been seeing in the market over the past two months.

“If the Fed turns a deaf ear to the market and does not signal a pause in rate hikes, we are likely to see markets in the U.S. and globally continue to sell off and break down to new lows,” he explained in our call of the day. “However, if the Fed finally acknowledges the material slowdown underway in interest-rate sensitive sectors, like housing and autos, and signals a pause we will likely be treated to a sell off in the dollar DXY, -0.21% and a rally in risk assets over the coming weeks.”

In other words, get ready for even more volatility VIX, +3.56% — we’ve already had plenty, as you can see from our chart of the day below — during a time of the year that has typically gifted investors with seasonal gains.

https://www.marketwatch.com/story/the-big-question-this-week-is-the-fed-about-to-completely-break-this-market-2018-12-17

Comments 1 - 8 of 8        Search these comments

1   Booger   2018 Dec 19, 5:11am  

Who the fuck thinks that interest rates are too high?
2   HeadSet   2018 Dec 19, 7:18am  

Booger says
Who the fuck thinks that interest rates are too high?


Debtors - They want low rates to keep their purchased speculative assets (stocks and houses) high priced.
Realtors and Car Dealers - Low interest rates means Joe HowMuchAMonth will pay more
Governments - always borrowing

Savers get boofed by low rates. You know, the type of guy who starts saving for his kid's college when the kid is born, but then has to deal with tuition costs run up by thoughtless, shortsighted, greedy borrowers.
3   HeadSet   2018 Dec 19, 8:45am  

ThreeBays says
Conversely who the fuck thinks higher rates are better? Savers who are so paranoid that they invest in nothing?


No, savers that want their savings to be worth something. And having a portion of the "portfolio" in CDs or the like is not "investing in nothing," as savers supply capital to those who borrow for productive purposes.
4   RWSGFY   2018 Dec 19, 12:45pm  

HeadSet says
Savers get boofed by low rates. You know, the type of guy who starts saving for his kid's college when the kid is born


These money go in stocks in tax-advantaged account usually, not into a savings account @ local CU.
5   HeadSet   2018 Dec 19, 2:01pm  

DASKAA says
HeadSet says
Savers get boofed by low rates. You know, the type of guy who starts saving for his kid's college when the kid is born


These money go in stocks in tax-advantaged account usually, not into a savings account @ local CU.


True, as I did for my now a Freshman daughter's college savings using a 529. I was more referring to the mindset of a saver who uses the 18 years to put away funds, rather than the mindset of not saving but taking out loans for college.
6   HeadSet   2018 Dec 19, 2:06pm  

Nope, not interested in 1% higher rate on my savings acct in exchange for 20% loss in retirement account and higher costs to buy cars.

We have no say on interest rates anyway, but if interest rates were to go up 1% you could buy cheaper stocks for your value portfolio and cars would be cheaper.
7   RWSGFY   2018 Dec 19, 2:10pm  

HeadSet says
DASKAA says
HeadSet says
Savers get boofed by low rates. You know, the type of guy who starts saving for his kid's college when the kid is born


These money go in stocks in tax-advantaged account usually, not into a savings account @ local CU.


True, as I did for my now a Freshman daughter's college savings using a 529. I was more referring to the mindset of a saver who uses the 18 years to put away funds, rather than the mindset of not saving but taking out loans for college.


Mindset or not, the savings account is a wrong vehicle to saving for something which is still 18 years away.
8   MisdemeanorRebel   2018 Dec 19, 4:04pm  

The interest rates are too damn low.

That being said, they could go up a quarter of a percent once every other quarter, because they've been so long it's a shock to the system. No reason to rush to raise them.

I hate the Fed. The flip side of "independent" is "unaccountable".

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