Rat, I think (hope) the Market realizes at some point that you can't have a stronger economy AND a lowering of interest rates forever.
To worry that the Feds might increase rates by 1/4 - 1/2 point (which are SHORT term rates and not the long term rates that affect things like Mortgages much) over the next 6-12 months because the economy is getting stronger is silly, stupid, idiotic and plain neurotic mania.
Number 1 ---- Rates would still be near 40 year lows
Number 2 ---- There is still no inflation problems
Number 3 ---- That would mean that the economy and profits would be getting stronger.
While our depressed and worried child, the Market, prefers to think of a tiny interest rate hike somewhere down the road as a negative, I say that it might actually be a good thing because it signifies that the Feds are positive that earnings and revenues are back strong and here to stay.
Meanwhile with no inflation in sight, they have no reason to raise rates until they are sure that the economy is fully on its feet again!
The Market somehow quickly forgets that the Market has gone up nicely for decades with interest rates and inflation far higher than they are today or will be a year or two from now. So why is it worrying about something like that! I guess from now on if interest rates ever go up 1-2 points from these levels (let alone to the levels in the 70's), that the stock market will totally collapse (he said sarcastically).
I say, give the Market some Celexa or Zoloft, and send it on its merry way. My goodness, if I had a sibling like the Market, he or she wouldn't have a single friend except me ('cause I'm a nice guy of course) and the street carrying phanatics who carry signs that say the world is ending tomorrow. Hey, even that isn't worth worrying about that much, but I don't want to get spiritual on anybody. |
