Silicon Investor (SI) -- The First Internet Community

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 : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (152683)	1/23/2020 1:22:42 PM
From: carranza2	Read Replies (1) \| Respond to of 218118

Ah, I don't know about all that chicken bone/tea leaf reading speculation. What matters most are interest rates. Note that the US 10 year rate has gone from the mid-2% in late Spring 2019 to 1.77% today. Although I haven't followed it assiduously, I am sure that with that kind of drop, there has been a nice bull market in bonds. If I recall correctly, interest rates didn't quite get that low during the 2008 Great Recession, when the world financial system teetered and tottered. With yield unavailable and interest rates even lower elsewhere (negative, in some parts of the world), the US stock market is one of the safe h(e)avens for investors looking for more than 1-2% yield, which is a joke considering inflation. It really doesn't require an excess of high functioning neurons to conclude that low interest rates therefore mean bull markets in both bonds and stocks, at least in the US. Wall Street and individual investors are very happy, though they are sitting on mis-priced assets that will get correctly priced brutally and without notice. However, the Fed has historically refused to turn off or slow down liquidity by increasing interest rates during an election year. Laissez les bons temps rouler! For now.