Once again...no inflation, yet everyone seems to think the FED will raise rates...again. So, we have a nice, growing economy, no inflation, low employment, and the FED is making it harder for the blue-collars to buy homes, cars, and items of daily living so the rich man can keep making money.
My advice. Invest now before the FED kills this great market for the common man. The rich will be just fine in a bear market or economic slowdown which is what it seems the FED wants. Maybe the FED should tour the country and see the faces of the people who live in it before making a decision about rates rather than looking at numbers on a piece of paper or using outdated models. Its easy to decide the fate of millions from your high-priced home when higher interest rates mean nothing. This economy isn't doing so well because of the FED but of technological innovation. Do you really think profits are rising the last year because the FED lowered rates in 1998? The boom called the internet revolution is responsible for it. Why have we been in a bull market since 1982? Not the FED...its because computers exploded on the scene making productivity soar. Now, its the internet. Its never been the FED, and it never will be the FED.
As far as the market goes, who cares about a 30-year rate of 6.7%? The trend is up, but so what? I can do 10% return in a week. Why would I leave equities for bonds? Don't think so. The older folks may leave, but I suspect the bond would need to get to 8 or 9 percent, which is not going to happen with NO INFLATION. Did you hear that Alan? There is STILL no inflation with this high economic production state, yet you have raised my interest rate 3/4%, and the majority of idiot analysts on wallstreet(WHO ALSO COULD CARE LESS ABOUT RATES SINCE THEY HAVE MORE MONEY THAN THEY WILL EVER NEED) think you will raise them further. Thanks(sarcasm) for making it harder for me to buy my next home! Why don't you come to my neighborhood and take a look around? See how the economy is really impacting middle America. Then go back to your ivory tower and make a choice.
JMHO |
