Posted on 02/02/2018 11:36:21 AM PST by BenLurkin
“Once consumer rates inch up to historical levels of 4% or so, people will freak out.“
30 year fixed mortgage rate is 4.375%.
By historical standards 6.000% is low.
But many people don’t have the proper context of what is normal
The 5% GDP growth forecast yesterday makes bonds cheap. But it also shows expectation of growth in equities...
Don’t know how people decide where to jump.
Yes, I have already bought into this opportunity. Could have done better if I waited a bit...but I am OK with it!
Yep. It hasn’t been ‘normal’ for years. As for the dow, big deal you can make money on the ups and downs.
Fear of the Federal Reserve, the true source of all recessions.
Pretty easy to tell you have provided something other than off-the-wall conjecture. I concur. A correction? Too early to tell, and not necessarily a bad thing. Long term? I’m going to make money in this market!
Point taken
Back when I got my BA in economics (1972), the traditional range was 4 to 6%.
My first house mortgage was at 11% and I was ecstatic when I ReFi'd at 9.5.
25,551.10 -635.61
I invest, albeit a little here and there.
With a couple of nagging expenses gone, I hope to up my participation.
Good day to buy some Apple.
Exactly, It’s time for the media to report the stock changes as a percentage of the market. A 400 point drop when the market is over 25,000 is about 1.5% drop. on the other hand on of the greatest stock collapses ever in 1929 was only 38.33 points but it represented 13% of the total market value.
Obama restrained and discouraged the American spirit for 8 long years.
Trump is unleashing it.
Hang onto your hat because we are in for an exciting ride.
My mom was telling me about rates back in the 70s / early 80s ... she was laughing at the rate I got recently ... I got locked in at 3.2% on my latest home.
The media is going to raise hell about rates going up because it sounds bad for Trump, but a decent rate will be a sign of a strong economy. At a minimum, for those that have zero faith in the stock market and prefer CDs or savings accounts, those interest rates should rise too.
I think we’ll see the higher end of “traditional rates” personally ... 6% ... that’s going to strike a nice balance for savers and investors.
Nope. It's an overblown concern about a strong economy leading to drastically higher inflation and interest rates, Fed intervention and then a correction. It would make sense if interest rates were much, much higher but at this level it is craziness. Buy.
“Trump is unleashing it.
Hang onto your hat because we are in for an exciting ride.”
Agreed. This market over the course of the next decade is going to make Reagan’s look tame in comparison :-). I was too young to capitalize on that back then (I got stuck with the dot com implosion right around the time I could seriously invest :-) ). I will NOT miss this one :-).
That sounds about like me. This c. 1983 on the first house, rates were just starting to come down from the worst of the Carter hangover years in the early Reagan Administration, but were still quite high.
That refi a few years later was really nice.
This may--MAY--make the '80's look like a kiddy carnival.
People and even historians forget that the crash of 1929 was actually the crash of the manic-enthusiasm of the Industrial Revolution.
The 1980's crashed in October 1987.
Obama restrained the American spirit and Trump is unleashing it.
It will roar until it becomes maniacal...then it will crash.
Totally understand that.
It has to do with interest rates and bonds... Interest were way to low to long and fed is going to raise them this year because of inflation. trying to get back to normal will see this over the next few months. Weird but nothing unusual especially you grow 45% in dow over last 1 year.
I see that, but inflation is not down for most items in our lives except for the house. Otherwise, it has been a disaster. Going to the grocery store needs a pre approved loan now a days. Seriously that bad.
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