So the Fed and QE are keeping the interest rates low. The market was down this morning in advance of the Fed meeting, and as soon as they said no tapering it's off to the races. Every time there's talk of cutting back by the Fed the market seems to stumble a bit, and as soon as they squash that talk it takes off again. I don't think the market is as related to the economy as it once was.
Quote:
Originally Posted by GregWeld
No --- the Market LOVES low interest rates....
Oldest market saying is one worth learning:
When interest rates rise the stock market dies
Give me 7% tax free muni rates and I'll be out of the market in a heartbeat! But as long as you can't make any returns with interest bearing investments you HAVE to be long the stock market. Not to mention that the low rates help companies make profits. When they start having to pay out more for borrowing (overhead) -- and inflation starts creeping in -- WATCH OUT....
But for now --- let's drink the tea!
|