SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Alan Bell who wrote (7609)9/4/1998 1:41:00 PM
From: MrGreenJeans   of 42834
 
The Bear Mentality

<<We have seen a number of big investors, and not just the usual bears, claim that we are entering a recession. The claim also is that by the time that the Fed recognizes this, it will be too late to lower rates (or alternatively because long bond rates are so low, lowering the fed rate won't stimulate much.)>>

I belive the Federal Reserve will hold rates steady in here until they see inflation picking up or a true slowdown in the US economy or more crises from overseas. Many cries from people who wish to see rates come down are not based on a slowing economy or the aforementioned but rather based on falling equity prices. I believe they want to see the Fed cut rates so they can be made whole again. I do not think the Fed will act due to falling equity prices...I would be shocked if they did.

In any event, the bond market seems to be taking care of lower rates anyway the 30 year bond rate as I write is somewhere in the neighborhood of 5.3%.

Further, there are those bears whose mentality that I do not understand that always believe that doom is upon us and we are on the brink of recession. It is important to note that one should not be bearish or bullish but that one should be objective. Be objective, be rational, be true to yourself as an investor, evaluate the situation, and act accordingly be it by buying or selling.

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext