| Online: | |
| Visits: | |
| Stories: |
The Confidence Game Is Ending
by Joseph Y. Calhoun
Alhambra Partners
Immediately after the Fed hiked interest rates last Wednesday – after sitting at 0% for 7 years – markets acted pretty much as one might expect. The Fed tightens monetary policy when the economy is strong so rising stock prices, rising interest rates and a strong dollar are all things that make sense in that context. I am sure there were high fives all around the FOMC conference room. Too bad it didn’t last more than one afternoon. By the close Friday, the Dow had fallen nearly 700 points from its post FOMC high, the 10 year Treasury note yield dropped 13 basis points, junk bonds resumed their decline and the dollar was basically unchanged. Not exactly a ringing endorsement of the Fed’s assessment of the US economy.
Continue Reading at AlhambraPartners.com…
Source: http://financialsurvivalnetwork.com/2015/12/the-confidence-game-is-ending/?utm_source=rss&utm_medium=rss&utm_campaign=the-confidence-game-is-ending
