RE:RE:RE:RE:the set up was there for a new run...Lol @ interest rates being 6%. Even if interests rates went that high, how long is that going to take the Fed? 10 years? They increase like 0.5% every year. God help us if the bull market is still running by then. We will probably have negative interest rates before they are ever 6% (imo).
TimMcCracken wrote: JeffreySkilling wrote: TimMcCracken wrote: slightfan1 wrote:
market throws a monkey wrench as a lot of "gurus" calling for a market correction. NOT smooth sailing ahead.
Same correction that the market experts have been calling for since 2013?
I agree they have been "saying" that for a while, but you all have to admit we are long overdue. The US market has been heavily inflated by what the federal reserve coined "quantitative easing", essentially printing money and inflating the heck out of the american currency.
Cheers,
JS
Agree 100% it is time to tighten ... my previous statement makes me appear complacent and unaware of risks ... however, I am typically a very conservative/ cautious investor ... this is my growth play as I like large caps ... which are very boring in comparison ... but the good companies have stable growing revenues, earnings, dividends, stock buy back programs ... my take has always been that the stock market will correct when interest rates get raised aggressively until then there is no where's else to put your money ... bonds can't compete as they offer next to nothing for return and real estate has gone crazy ... so I firmly believe when interest rates rise to about 6% +/- you will start to see some money come out of world markets ... 66% of the stock market earnings are made up from consumer spending ... with higher rates comes increased payable interest ... the consumer pays more to service debts and they have less money to spend on discretionary items ... therefore hurting companies top and bottom lines ... also, to me that's the tipping point when a 6% bond could look attractive and start to compete with stocks ... just my thoughts