Posted on 02/06/2018 1:08:36 PM PST by davikkm
I am aware of the fact that other things are happening besides the Trump-Russia investigation and the now-declassified FISA memo which sparked outrage in leftist circles. The stock market’s wild ride is giving investors high blood pressure and huge amounts of stress, yet there’s not much to say about the issue, except from what I’ve already told you back in January:
“All bubbles in the economy are owned by the Federal Reserve, who is now slowly pulling the life support from the US economy by raising interest rates. ZIRP (zero interest rate policy) is now over, so is Quantitative Easing (helicopter money, the pillars of Obama’s “recovery” via fiat/cheap money), and with interest rates raising citing fears of inflation (also created by the FED via its monetary policy), the companies will not be able anymore to buy back their stock via cheap overnight loans. The era of cheap money is over, and Trump will be held accountable for the planned collapse of the US economy sooner rather than later. Just wait and see.”
(Excerpt) Read more at investmentwatchblog.com ...
and if “they” do, “they” need to pay a heavy price.
With all this money pouring back into the economy, companies won’t need to borrow money to buy their stock back.
Zero interest rates were a horrible aberration. If money has value, then borrowing money should have a cost, and money on deposit should have a value. That is the historic relationship.
For the economy to be healthy, interest rates need to gradually return to their historic relationships. Saving, borrowing and investing can then become based on sound relationships again.
EXCLUSIVE: Russian pranksters spoof Adam Schiff by telling Democrat that Putin has NAKED blackmail pictures of Trump - and he gets his staff to try to collect ‘classified materials for the FB
I hope those Russian comedians don’t visit Fort Marski Park if they come to US
I've pretty much noted the same thing here on FR, other than the collapse and got my ass handed to me. I disagree with his collapse. Rotation out of Stocks and to Bonds and or Markets the wonks think are going to where the money is going forward? Yes. Been their done that, I was talking to a Broker as a young investor the day the market hit 777 under Reagan with huge volume. I denoted that and said rep, noted you are very perceptive, their is a rotation into perceived winners for this Reagan economy going on here. He was correct, companies that were related to a recovery ( Toro, for example, people had the money to buy a new lawnmower ) did smashingly well. IMHO perhaps this is what is going on now, Rotation in winners and Bonds as we move away from the Bernake Twist yield curve.
ZIRP, Porkulus, Quantitative Easing and hopefully Monetization of our Debt are DEAD, and may they not rest in peace, like every other fuster-cluck team Obama thrust upon us...
Amen. Zero interest rate were a way to destroy the middle class, while charging usurious rates on credit card debt.
The stock market probably has real value for first time in years. It is a blimp no4t a bubble.
Politics is a blood sport. That was amply demonstrated back in the days of Richard M. Nixon. The naked tactics applied back then, in trying to utterly isolate Nixon, then picking off his subordinates one by one, were not lost on either participant in the 2016 participants in the race for the Presidency.
Herself had a DIRECT hand in writing up the proposed articles of impeachment, and was so harsh in her approach that she was discharged from her position on the legal team that was preparing the documents. Donald Trump was in position to observe this entire Kabuki theater production from the outside, and he intently studied the strategy and tactics used as an example and a guide of what pitfalls to avoid. Some of the moves of the liberal cabal were very predictable when it came to Trump’s response to their efforts to unseat or derail him, and adroit street fighter he is, he has feinted and dodged around the obstacles thrown up against him.
Not a level playing field by any means, but the map and playbook of the liberal Democrats and RINOs has been pretty well deciphered and applied AGAINST them.
I had wondered whether the FED would open up a new front in the dump Trump wars. They certainly can manipulate the economy in strange ways.
With Yellen leaving last Friday, Trump should be able to pick a replacement who will at least not be political.
One of the Sunday morning radio investment advisors (sorry, I cannot remember his name) was interviewed by a conservative talk show host Monday night. I liked his assessment.
He said that following the stock market is like following a yo-yo. The economy is like an escalator. So we are playing with a yo-yo on an escalator. If you believe in the movement of the economy, then you should put up with the ups and downs since the downward movement of the yo-yo will result in a higher peak on the upward side. On the other hand, if you have no faith in the economy, then the yo-yo will be spiralling downward.
Pay attention to the economy!
If the same statements were made to/about the clintons, who thinks that there would be a trail of bodies a mile long?
Who knows, but so far with the exception of Sleep Sessions, all his cabinet picks are u[holding current Law and to hell with people feelings. If he holds true to form, maybe the FED Cartel will be held to 0% inflation like the LAW says. In which case look for 8-10 % interest mortgages where they should be.
Inflation is Theft of Value.
They bet the farm that Hillary was going to win and spent 750M to make it happen.
Now they are going to bet the farm to keep from loosing Congress and Presidency for the next 20 years.
If things keep going the way they are going, it could all break loose around June-July.
I’m going on 67 and am retired. My present portfolio is 10% in cash accounts, 37% in CDs, 21% in stock funds, and 32% in bond funds. To say that my investment portfolio is conservative is putting it mildly. Thus, this “correction” did not hit me hard. With interest rates rising my CDs and bonds should improve nicely, all things considered. We own our home outright and have no debt, which is the most important thing for retirees.
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