Home Forums Hunting & Shooting Hunter's Campfire Looks like they're going to shut it down

I said so back in November, although it's happening sooner than I suspected.



http://money.cnn.com/2017/03/01/news/economy/march-rate-hike-dudley/

New York Fed President William Dudley told CNNMoney on Tuesday that the case for raising interest rates is growing.
"I think the case for monetary policy tightening has become a lot more compelling," Dudley told Richard Quest.
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"The real news this week was the dramatic shift in rate hike expectations," says Peter Boockvar, chief market strategist at the Lindsey Group, an investing firm. Boockvar cited Dudley as well as comments made by other Fed members for the change.

https://www.24hourcampfire.com/ubbth...s/11576099/all/Looming_Massive_Inflation

This discussion will be coming back around, I bet.

Did you think 0% interest was a good thing?

Depends if you are borrowing or lending. miles

I don't think crashing what's left of the economy while Trump is in office is a good thing.

The Federal Reserve is an organization of moneychangers and you know what Jesus thought of them.

We're not gonna use fake obama numbers anymore?

In the '80's prime rate was at or near 20%, the economy survived. I'm sure it can handle a 4% prime rate. If it can't we have a much larger problem.

KC

You're an idiot if you think the interest rate shouldn't rise, or that the economy isn't doing great.

Stop trying to say the sky is falling when it's not. Or when you have the education level of an ant and can't get a job better than a Walmart greeter.

We have a much larger problem. Many of them, in fact.

Bristoe . . . my financial adviser says rising interest rates will benefit the markets . . . He says it is a sign of a strengthening economy.



"Since Mr. Trump has been elected president, investors' interest in "Inflation Protected Funds" has been soaring due to increased inflation expectations. Demand for these products is expected to continue to increase, especially after the U.S. Fed raised interest rates by 0.25% and increased its projections for future rate increases, indicating 3 rate hikes of 0.25% in 2017. The Fed also forecasts 3 rate hikes in both 2018 and 2019.

"Following this new trend, major cash inflows from investors are currently going into "Inflation Protected Securities". These tend to be securities that are either hedged against rising interest rates or that actually benefit from them.

Repositioning One's Portfolio

"At this point, high-yield investors need a strategy for repositioning their portfolio to maximize dividends and total returns. Part of this strategy should also include selling securities that are particularly vulnerable to rising interest rates, such as long-term bonds and perpetual preferred shares.

"Also, part of repositioning one's portfolio should include allocating to asset classes that will benefit from interest rate hikes. These include Floating-Rate fixed income CEFs, Floating-Rate BDC companies, and a few Commercial mREITs. These securities are able to weather higher interest rates due to the floating nature of their portfolio.

"The S&P 500 exploded to the upside yesterday as we continue to see quite a bit of buying pressure. The strength in equities was due to a well-received presidential speech, and an increase in the likelihood of an interest rate hike in March which shows that the U.S. Federal Reserve is confident about the strength in the U.S. economy. This resulted in new record highs on all of the major indexes. Interestingly a few important economic reports came up short of expectations yesterday including construction spending and consumer spending. But manufacturing and housing data exceeded expectations and in a market with the kind of momentum we are seeing bad news gets totally ignored.

"The fact we are overstretched has not stopped the bulls from driving the markets higher. This kind of price momentum reminds me of what happened in the late 1990s with the tech bubble burst; when no one wanted to miss any moves higher even though the signs were clear that a top was forming. However, today is very different from the 1990s because valuations are still reasonable. We are pretty far from being in bubble territory and this market still has a long way to go.

Short-term outlook

"As we approach the 2400 level, I would expect to see a little bit of a pull back, but given enough time the S&P 500 index should move towards the 2500 level and higher. I believe there is a significant amount of support near the 2350 handle underneath the S&P 500 index, which acts now as a new "floor". We cannot but respect the strength of this market.

Long-term outlook

"The main trend for the markets remains strongly to the upside, with US indices looking very healthy.

Best course of action

"For those fully invested: Keep holding and collect the dividends.
For those who wish to put new money at work, below is the best strategy to follow.

Best Strategy for putting new money at work

"Buy a 50% of your intended target position from the stocks and securities tagged as Must-Own and Top-Buy, while taking into account the "Buy Under" prices.

"Wait until we see the S&P 500 index back to around the 2350 level to fill the rest of your positions."

The only new news today was a possible 3rd rate hike over the already promised 2 during last years dress rehersal, which BTW did not create any mass hysteria.

Maybe this will finally free up big bank money so folks can start buying big ticket items again. Also, fix the tax code and this is not relevant!!

lolol,...

If the tax code is fixed and the offshore profits and industry is repatriated over the next couple of years then the rate hikes will help normalize the economy and put it back on a rational basis. Pensions and personal savings have been devastated by the free money the Feds have been putting into the zombie banks to prop them up. The end of free money combined with tax overhaul to incentivize repatriation of offshore profits and manufacturing would return the real economy to a rational basis. Pensions would have a chance to recover although the demographics are stacked against them. Yellen and the Fed may believe that they will be screwing Trump and America but they may in fact accidentally help. The zombie banks need to be allowed to fail. There is still trillions of bad debts that the banks are being allowed to carry and account for at their stated value and not marked to market.

Ding, ding, ding . . . give the man a cigar!

I'm short a P, and H, and a D, of having a PHD, but If a dollar is not "Worth a Continental", (Remember that?), what good is having any?

Inflation robs anyone with savings.
0% is not logical.

Bristle is right, as usual. If it wouldnt hurt the economy Yellen, Zeros bud, wouldnt do it. Now, see if you can figure out why she didnt raise rates with Zero in office.

Are you saying the economy has already rebounded since Trump got in, or are you one of the nutjobs saying Zero fixed the economy before Trump got in?

At last. When you're trying to boost the economy you have zilch for interest rates. Your money should best be spent now. When the economy is working, then your dollars should be worth more in the future than they are now. The interest rate recognizes that. In the majority of our past the dollar was worth more as time went on so interest rates reflected that. Is our economy so flat-lined that a dollar today won't be worth a farthing more in the future?

We can just pull out of the Fed and pay them off. Although JFK tried it and look where it got him.

We have much larger problems.