MDA - Market Direction Analysis Message Board

STOCKTALK

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 : MDA - Market Direction Analysis

SPY 671.91

0.0%

Nov 14 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: American Spirit who wrote (52357)	5/27/2000 11:18:00 AM
From: Patrice Gigahurtz	Read Replies (1) of 99985

My 2 cents is that they messed up and didn't calculate the flip side of the "wealth effect" and that's the "poor effect". The gradual %-rate increase approach was working but they panicked, fearing they'd be perceived as behind-the-curve. Now where is the trust ? They promised a "gradual approach" and backed away. A misunderstood FMOC isn't that warm-and-fuzzy any more. Now instead of a liquid stock market the trading is thin. Why ? Because % rates will be further increased if the stock market(s) rally. So what's the incentive to invest in stocks if it results in more %-rate increases ? What's the incentive to invest in bonds if there are further %-rate increases ? How does it make sense to destroy investment in the name of squelching 3% rate inflation and 3.9% unemployment because of some old pre-PC technology & pre-Internet theory that that combo will result in runaway 1980s style inflation ? Thanks

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next