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 : Rande Is . . . HOME

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Rande Is who wrote (25446)5/8/2000 1:00:00 PM
From: Joe Smith  Read Replies (2) of 57584
 
Rande-- A couple of factors to think about. One is obvious--The election year.

The second is something I've been noticing over the last couple of weeks amongst friends, family and associates. The longer the money stay one the sidelines and the higher the interest rates go, the more attractive it seems to pay down debt. None of us were in much of a hurry to pay down home equity loans, low-interest credit cards etc when we wee getting such great returns in the market. But now that those rates are moving into the 10% range, some of that cash is clearly moving off the sidelines in order to pay down debt. This is great long-term as we will all have more money to invest over the long-term, but for the short-term this means there is less money and less liquidity. I believe that this is just what ALan G wants. As rates go up, we are not only less interested in taking out loans, but we are more interested in paying down old debt. How many out there put home equity money to work in the market? How many are thinking about paying some of that back with profits??? Not only is less money entering the market because money is more expensive, but money is actually exiting the market to pay down debt IMHO. Any thoughts anyone?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext