In the long run, if the FED can contain inflation without raising rates too preemptively, then that would be the best scenario. Economy still strong, inflation contained.
But what you are missing is this. With the amount of liquitidy these days flowing in and out of stocks and bonds, any rise in rates simply means a better sources of investment for many funds. Outflow of money from stocks, inflow to fixed investments. As little a rate hike this may be, and for whatever reason, the amount of money being shifted these days makes a difference. Yes, stocks may be hurt, and no the companies may not be hurt too much. So maybe it is a buying opportunity, but keep this in mind.
Second of all. The fact that you see nothing wrong has to worry you. It always worries me when things are working against me and I cannot see why at all. I may not understand it, but I should be able to see the reasons for it. You have to worry...by the time you start to get a clue, might you be in trouble.
>>>You know. I hate to seem like a the thread head cheerleader, but I just do not see the negativity in this economy and market that is being expressed. IMO it is a HUGE over-reaction! The economical outlook is still incredible. Companies are making money! ATHM has only had good news over the last year. Nothing has changed except the negative media. Realistically, a 3/4 point raise of rates and they would still be considered low. NOTHING HAS CHANGED. Why in the world wouldn't I be buying now???? I just don't see all of the bearish arguments making sense. To many missing pieces in their proverbial puzzle! If this were a court room, they wouldn't have a case. Not enough evidence to prove we are headed for a bear market or a recession. JMVHO! If I am wrong, I will lose money. If I am right....... I am very comfortable with my decision.<<< |
