NewInvestor
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US Stock indices is now trading flat. Would we be seeing a reversal from here?
It is about time that US equities pulled back....
US Stock indices is now trading flat. Would we be seeing a reversal from here?
US Stock indices is now trading flat. Would we be seeing a reversal from here?
The stock market is terrible at predicting interest rate movements.Trump demanded it, presumably to artificially prop up the stock market.
The sicko going around making wild guess & allegation again? I remember he made similar allegations against some other people in this forum previously.
But talk of ervino, i kind of miss his posts (like revhappy), which to me is very different from many others here that has herd mentality, or those with metality that if you state contradictory views from theirs, they will start calling you a troll (like Mike here).
I think the fed intimately knows that this very long bull run is largely attributed to low interest rates. The only reason why interest rates haven't risen at all is due to the low inflation of approx 1.6%, which is below fed target of 2%. Even if the stock market were to be in bear territory, it does not equate to a recession. You can have a crashing stock market but no recession. At current fed rate of 2.25-2.5% and unemployment rate of 3.6%, by historical standards, the interest rate is really low. If anything, if the tariff causes a slight increase in inflation to 2% and unemployment remains constant, we may actually see a rate hike coming Dec 2019.Interesting
The stock market is terrible at predicting interest rate movements.
https://www.marketwatch.com/amp/story/guid/AFE2EAD0-888E-11E9-8B28-E5CA5B3C6912
If ADP employment figures and nonfarm payroll continue to be very bad, it is a good indicator that unemployment rates will rise or at the very least, unemployment claims will increase. But of course if all is good and inflation somehow finds itself into 2% range, a rate hike is possible.Not sure whether that can happen because Trump now still demanding Fed to cut rate & Powell seem scare of Trump (from predicting rate increase to no increase because of Trump).
Erm... Not sure how I'll answer your question as the term "long term" and "trade" are oxymoron. However in essence of your statement, it's true long term investors are less reliant on interest rate but the stock market evidently trades based on interest rate probabilityI don't think any seasoned and long term investors will trade based on interest rates.
Just finished watching the movie 'The Wizard of Lies'. It is the story of Bernie Madoff and his family. Its really an amazing movie. I didn't know Madoff scandal was so big.

I don't think any seasoned and long term investors will trade based on interest rates.
US Stock indices is now trading flat. Would we be seeing a reversal from here?
It is about time that US equities pulled back....
2nd that.... the mkt is betting on hope that the Fed would cut rates. Last week's rise was crazy and irrational.
Selloff is in line with gold ejaculation... Damn...bought another 1000 goro shares yesterday. Looking forward to a feast tonight.U.S Futures are selling off now
It really depends on what time frame you trade in. Markets cannot always go up or down in a linear fashion. I thought the Mob would always be optimistic and greedy and would continue to hope for fed cuts and push markets higher until we see a reversal set in... fear then takes over. So what is not rational? Fear or greed? If you get the cycles right, whether it goes up or down, you would not see it as irrational right?
Selloff is in line with gold ejaculation... Damn...bought another 1000 goro shares yesterday. Looking forward to a feast tonight.
Sent from HMD Global TA-1004 using GAGT
He was another "legendary investor" who never lost any money whether it was a bull market or a bear market![]()