GREY:EBGUF - Post by User
Post by
marketsenseon Feb 07, 2018 6:33pm
299 Views
Post# 27522874
Concerns
ConcernsThe high yield is attracting investors but with the threat of more rate increases and a potential
destabilizing of the stock market, there is a growing fear for safety of capital. I see this as a
complicated host of problems that is not easy to sort out. Inflation is becoming a fear, rate increases are a fear, further market crashes are a fear, and the US gov't ability to continue
to service their trillions of $ debt is also a fear, A lot of fears tend to make people nervous
If the Fed pushes too hard, the US economy goes into recession which is bad for Trump.
If they back off for a while, inflationary pressures will continue to heat up. The Fed is walking
on a tightrope so will have to be very careful not to step too far one way or another. As for
ENF's dividend, I see no threat right now, but I expect further volatility for most stocks as an
asset class.