I am personally sure that this will get progressively more out of control, and only the fed can slow it down with a a series of hikes.
Eugene,
out of control yes, fed rate hike no.
If fed hikes the rates, more money will come flying in resulting in a stronger dollar, weaker yen, devaluate RMB, destroy HK peg, sink Indonesia, Thailand etc.
If fed drops rate, stock market goes crazy, S&P PE goes to 50, more money goes into equities market. Our stock market will push the bubble's elasticity, or is it surface tension, to its limits.
Either case, some wild coming soon.
How the hell is all this going to impact capital expenditures, especially for the sector in question?
Ramsey |
