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from The Daily Bell
Why the Fed Won’t Tank the Stock Market … Investors in the U.S. seem fixated on a gloomy outlook for 2015, in which the Federal Reserve’s efforts to remove economic stimulus cause stock and bond prices to fall. They’re missing an important detail: If the Fed raises short-term interest rates above those in other major economies, U.S. markets may actually benefit. – Bloomberg Opinion
Dominant Social Theme: When rates go up the market goes down. Or maybe not.
Free-Market Analysis: This is a continuation of the Wall Street Party meme. We don’t believe the Fed has any intention of disinflating, let alone deflating (not seriously anyway) but just in case something happens …
… here comes Bloomberg to inform us that it doesn’t matter. Not to Mr. Market anyway. If rates go up, investors will pile into the dollar, this article tells us, and related assets because the dollar will be the strongest of the weak.
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