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To: springwater13
The money doesn't look like it is going anywhere. Gold is up just a little. Real Estate is long term and bonds suck.

So after a little scare the cash will all come back to the stock market.

6 posted on 01/20/2016 9:25:29 AM PST by central_va (I won't be reconstructed and I do not give a damn.)
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To: central_va
So after a little scare the cash will all come back to the stock market.

I think you're right, mainly because of the bond situation you also mentioned. If the 10-year bond was paying, say, 6%, folks just might park their investment money in bonds, and leave it there.

But the Fed has taken away that option. Folks have no choice but to eventually drift back into stocks. Of course, the key word is "eventually". I haven't figured that part out yet.

34 posted on 01/20/2016 9:35:58 AM PST by Leaning Right (Why am I holding this lantern? I am looking for the next Reagan.)
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To: central_va

I was just telling my wife something similar. The money has to go somewhere. There is no inter-dimensional portal that sucks only money into it.

OTOH, credit is money. If people simply default, the money goes away the same way it came in - as a vapor.


44 posted on 01/20/2016 9:40:13 AM PST by cuban leaf (The US will not survive the obama presidency. The world may not either.)
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