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To: Tell It Right

The way things are now shouldn’t BAD NEWS cause the markets to soar?-)


25 posted on 07/13/2022 7:25:15 AM PDT by Harpotoo (Being a socialist is a lot easier than having to WORK like the rest of US:-))
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To: Harpotoo
"The way things are now shouldn’t BAD NEWS cause the markets to soar?"

That's often the case with the Fed at the wheel. They're like Bizarro World where bad = good and good = bad. Inflation is an exception, though. High inflation (at least in the official bogusly calculated CPI) means the Fed is all the more likely to raise rates bigly, which makes the dollar stronger and brings prices down (relative to the dollar). Plus, raising rates means smaller companies have to pay more to expand if they do it on loan (same for larger companies but they're less liable to do it on margin than small companies). Less company expansion is bad for markets.

26 posted on 07/13/2022 7:32:19 AM PDT by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
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