The minute they do the stock market will collapse.
I don't think they will raise - but if they do it won't cause the stock market to collapse, at least right away.
It would cause those taking out debt - then turning around and putting it right into the market - to rethink their allocations.
If the Fed raised too high then that asset bubble of "debt to equities" would burst and the market would correct downwards dramatically.
“The minute they do the stock market will collapse.”
No way. If anything, many companies in the stock market will greatly benefit from inflation and higher interest rates.
“The minute they do the stock market will collapse.”
I doubt that. It might correct a bit but definitely not collapse.
The market is a forward looking machine. It’s valuation is a function of what investors think is going to happen going forward.
Since the fed has announced the rate increases the market has already discounted that. We’ve seen a few percentage correction, but nothing like a collapse.
Actually, in the long run the market may see some rate increases as beneficial, since it doesn’t like inflation either.