Stocks Drop Despite Surprise Fed Rate Cut
Dow industrials drop more than 500 points, Treasury yields fall after Federal Reserve cuts rates
Posted on 03/03/2020 7:10:27 AM PST by L,TOWM
As typical on Fed rate days..the market gyrated..digested the news..decides it doesn’t like it..headed back down as it was this morning before the rate cut.
“Who gives a sh*t about the world economy!?”
If you are an investor you better give a sh*t. The fact you don’t see the connection between the rest of the world and us from an economic perspective indicates you need a remedial course in economics in this day and age.
Right on!
It might change up. “Powell the Putz” often causes the market to go down when he speaks.
It might recover this afternoon....or not.
We need common sense knuckle control! More people are killed by good old fashioned fist beatings than rifles.
Btw, for those watching USA mask maker APT followed by hedge funds...look at the gyration of it today.
Watch for news to come out. (not about the stock..just in general)
Something has caused it to spike
“I have my own theory and it lies in the political realm.”
AHA!! You must mean that secret group of people who in dire times and huge mkt selloffs buy equities for especially set up entities in order to create momentum in the market.
The legendary “Plunge Protection Team”
Right?
Ten-year bond yield is plunging, down to all-time low of 1.02%.
It could help keep companies investing despite short-term dips in profitability, however.
Just a guess. Perhaps you aren’t, and don’t have as a loved one, someone elderly and immune compromised in a high-risk location?
Your question alone makes plain talk’s point.
This will blow over in the coming months. Rome wasn’t built in a day.
“Are you aware of why? Hint - it wasn’t because a lot of investors saw cheap stocks and decided to jump back in. “
If your group of informed investors did not see it that way, that was their fault. Mine jumped back in early yesterday morning, before any news or comments by anyone, because they rightly saw the previous week’s decline was based on panic, not better information.
Indeed. When we were last house-hunting (1982), rates were running 14-16%. The developer for the new area we ended up in was offering graduated rate financing - started at 7%, up 1% a year, capped at 10%. We took them up on it.
PFL
The cut brings the funds rate more in line with the market. The Fed was manipulating rates to be above the market for way too long.
This
However, the market manipulation of the Fed and their reasoning for doing so on a historical basis is difficult to rationalize and cannot be viewed absent politics. They kept us on a sugar high that masked the economic malaise of the last administration. Up to this cut announced today they have seemingly acted to dampen the economic surge under the current administration.
Trump has been correct in his assessment and his criticisms, but I am not sure why they acted so dramatically today.
http://www.321gold.com/
The USA only exports 6% of GDP. Exports, while important, are not that important compared the 94% OF GDP NOT DEPENDING ON THE “WORLD” ECONOMY..
Yes we have enjoyed cheap and easy money for a while now.
...
We’ve gone through cycles of cheap, neutral and tight money.
The money was cheap to make up for Obama’s bad policies, but tight to fight Trump’s good economic policies. I base my assessment on the current markets, not history.
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