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 : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 414.48+0.7%Jan 9 4:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TobagoJack who wrote (163515)10/9/2020 11:20:11 PM
From: THE ANT1 Recommendation

Recommended By
elmatador

  Read Replies (2) of 219174
 
The housing market lags by about 5 years when there is a large,sudden change in interest rates. A drop in Fed rates from 1.75% should result in housing going up by 50-60%. Problem is most house purchases require bank lending. Banks will only lend money based on the price of the last house sold in the community plus maybe 10%. It thus takes years for housing to reflect the fall in interest rates of 2%. Same reason for housing busts,If the Fed raises rates by 2% housing will fall by about 50% but banks keep lending for housing at the value of the last house sold in the community. Now for the developing world. When Fed dropped rates to zero this year stocks in a stable economy like India should rise by 50%. This assumes the market in India was not at a speculative premium ( the world was buying India way above value as it was in vogue ) prior to the 2% interest rate drop ( In this case in the moderate run India rises but less than 50% as some of the steam from the speculative frenzy wears off) Speculative positivity or negativity is always short term and in long run returns to zero (TSLA) but it must be estimated to be able to get a feel for an assets value over the long term Anyhow the liquidity from the 2% drop in rates in the US always hits the developing market with a delay ( although less delay than with housing) so a lot more developing world stock appreciation coming. Again the housing market and developing markets will be back with a boom and take oil up with them. This will be the last hurrah as with zero rates its game over other than MMT.Sorry for typos in last post.As I have said before on this board I dont read words I read pages
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News