Jeff, more on why the fed is a problem, from aaron task at TSC tonight
<<What really happened is the Fed tightened by 25 basis points each in February, March and April 1994. So far, so familiar.
Greenspan & Co. then raised rates by 50 basis points in May, but that was far from the beginning of the end. The central bank then hiked by another 50 basis points in August that year, another 75 basis points in November, followed by an additional 50 basis points of tightening in February 1995.
If that history is indeed a guide, it doesn't sound like the end is near.
"There is complacency about the Fed," said Barry Hyman, chief market strategist at Ehrenkrantz King Nussbaum who is bullish long-term, but not short. (There's also "ignorance" about Fed history, according to Padihna.)
"It's not the May [hike] that's disturbing," Hyman observed. "It's what comes after. Potentially, we're looking at an open-ended series of hikes."
Try as I might, I just don't see how that's "good" for stocks. >> |
