Posted on 05/14/2015 11:08:45 AM PDT by blam
Linette Lopez
May 14, 2015
All of Wall Street has been waiting for what happens when the Federal Reserve raises rates and the bond market becomes attractive again.
For years it has been thought of as the next cataclysmic event in investing.
But what if it isn't? What if everything is going to be fine?
Think about it: Bond yields have spiked over the past two weeks. Most market participants are blaming big fund managers trying to get ahead of the Fed. The stock market, however, hasn't really been hurt that much as this has been going on.
So what if yields rise slowly and the stock market takes a few hits here or there but for the most part remains OK?
"Modestly rising rates is probably the best possible scenario for US stocks in my opinion," said Dan Nathan, a veteran trader and editor of RiskReversal.
(snip)
(Excerpt) Read more at businessinsider.com ...
Just keep pretending. If everybody in the world keeps pretending, everything will be OK. Who needs reality when we can have fantasy?
What if everything is going to be OK? Forever?
bump
Things are not going to be OK forever, but things can get better. Apocalyptic prophesies get more attention.
It might be if we removed the cancer among us however the left won’t sleeping dogs lie. They keep stirring the pot trying to make things worse.
the thing is that everyone who made a bundle since the market was 6000 will be in a lot better shape for the collapse if they take their money out than those with none.
head injury over five years ago. wiped out 401k to survive. I will be screwed when the stuff hits that fan. Just started working at office job on staten island again for good pay. but if everything goes under it will be gone.
Sometimes wonder if I should have just headed to PA for 400 a month rent and lived out my days up there.
When economists, traders and speculators hide their heads in the sand it's called the 'Ravenous Bugblatter Beast of Traal Economic Protocol'.
It is such a mind bogglingly stupid protocol that says if you can't see the coming tsunami, it can't see you.
It’s always great if you can time the market.
The thing is, if you’ve done well, you are not just timing the market, you are giving away a big chunk of the “gains” to the government in taxes. So, you have to be right about a drop even if your intention is to just take a pause.
There are ways to take a pause without a full tax hit, but they cost some money (i.e, hedging with options).
Timing is wonderful when it works...
Sorry to hear about your injury... I read about it on one of your posts a few days back. Good luck.
We are truly doomed.
My wife and I reach 62 next year. If necessary, we could live on our home and 32 acres on SS alone.
My husband and I could too. But we're taking $2,000 a month from our IRA's to give us some extra cash.
i don’t plan on retiring for a while...
Everyone might eventually be “ok” when Obama is gone in a year in a half and we elected Ted Cruz.
But if we get Hitlery... well, it’s all over for the US
Well, that's the whole basis of modern economics. That, and making sure creditor nations don't have strong enough armies to demand repayment. :)
I mention it too much and must stop. Usually it is used in context to explain a point in my history that wouldn’t make sense without mentioning it.
everyone has problems. Self pity will destroy a person faster than any injury.
Thanks for your thoughts though.
GOOD FOR YOU!! you planned, you worked and you can live a great long life happy and not worrying about finances.
Markets go straight up, always. It’s a law of economics.
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