Rate Cut

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tyler3535
Posts: 109
Joined: Thu Jan 12, 2017 2:50 am

Rate Cut

Post by tyler3535 »

So if Powell hints at not cutting rates on Weds/Thurs, who will be running to the G fund???

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TSP Jedi
Posts: 196
Joined: Tue Nov 21, 2017 9:53 pm

Re: Rate Cut

Post by TSP Jedi »

all the people who bought C fund at all time highs lol

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bloobs
Posts: 1616
Joined: Tue May 21, 2019 8:00 pm

Re: Rate Cut

Post by bloobs »

tyler3535 wrote:So if Powell hints at not cutting rates on Weds/Thurs, who will be running to the G fund???
the market seems to be already pricing in a fed delay or reduced rate cut the last couple of trading session through tomorrow, so it may not be that bad either way
Anger and intolerance are the enemies of correct understanding.
― Mahatma Gandhi

If it's a choice between a difficult truth and a simple lie, people will take the lie every time. Even if it kills them.
― Paul Murray

Scorpio70
Posts: 432
Joined: Thu Dec 24, 2015 11:49 am

Re: Rate Cut

Post by Scorpio70 »

That's not a big deal. After what happened with deutsche bank one would have thought we would see a real meltdown. But no....not really.

tyler3535
Posts: 109
Joined: Thu Jan 12, 2017 2:50 am

Re: Rate Cut

Post by tyler3535 »

A rate cut would be bad for the F fund right?

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bloobs
Posts: 1616
Joined: Tue May 21, 2019 8:00 pm

Re: Rate Cut

Post by bloobs »

tyler3535 wrote:A rate cut would be bad for the F fund right?
supposedly a rate cut would revert all of the F funds gains in 2019 in a jiffy
Anger and intolerance are the enemies of correct understanding.
― Mahatma Gandhi

If it's a choice between a difficult truth and a simple lie, people will take the lie every time. Even if it kills them.
― Paul Murray

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Horaenaut
Posts: 102
Joined: Mon Apr 29, 2019 11:18 am

Re: Rate Cut

Post by Horaenaut »

bloobs wrote:
tyler3535 wrote:A rate cut would be bad for the F fund right?
supposedly a rate cut would revert all of the F funds gains in 2019 in a jiffy
What? No--I'm pretty sure rising rates are bad for the F. Rate cuts are good news for bond funds:

https://www.forbes.com/sites/mikepatton ... 15a4aa6308

What might wipe out the F is if there is no rate cut and all the priced-in anticipation is for nothing.

SnareMV17
Posts: 176
Joined: Thu Jan 10, 2013 9:06 am

Re: Rate Cut

Post by SnareMV17 »

Falling rates are good for bond funds, but stable low rates are not.
"Get your money for nothin', and your chicks for free."

Following TSPCalc strategy #64902.

Ericdelee
Posts: 213
Joined: Thu May 30, 2013 7:09 pm

Re: Rate Cut

Post by Ericdelee »

A couple of questions:
What is the historical performance of the DOW/S&P500 for Rate cuts? It appears like a likely cut is coming soon and another one later this year.

Is there a good site that dissects what has happened over the course of cuts during the past?

SnareMV17
Posts: 176
Joined: Thu Jan 10, 2013 9:06 am

Re: Rate Cut

Post by SnareMV17 »

Pretty sure the relevant data is the last 10 years. That’s what happens when cheap money is pumped into the economy. “Know your dope fiend.” The market will get boosted up and up while our retirement accounts are inflated into oblivion. Sounds like fun, doesn’t it?
"Get your money for nothin', and your chicks for free."

Following TSPCalc strategy #64902.

Riverview
Posts: 10
Joined: Tue Nov 07, 2017 1:13 pm

Re: Rate Cut

Post by Riverview »

tyler3535 wrote:So if Powell hints at not cutting rates on Weds/Thurs, who will be running to the G fund???
Any guesses when the next rate cut is coming?

fiona
Posts: 10
Joined: Mon Nov 06, 2017 1:09 pm

Re: Rate Cut

Post by fiona »

I'm thinking September and another in December.

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Jimboslice
Posts: 10
Joined: Mon Feb 04, 2019 1:29 am

Re: Rate Cut

Post by Jimboslice »

Fed may get more dovish with the ongoing situation with China heating up.

tet
Posts: 10
Joined: Wed Jun 14, 2017 3:06 pm

Re: Rate Cut

Post by tet »

fiona wrote:I'm thinking September and another in December.
Pretty good guess.

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Fund Prices2024-03-27

FundPriceDayYTD
G $18.14 0.01% 1.00%
F $19.09 0.26% -0.68%
C $82.11 0.87% 10.42%
S $82.19 1.48% 6.61%
I $42.68 0.56% 6.21%
L2065 $16.38 0.84% 8.36%
L2060 $16.38 0.84% 8.36%
L2055 $16.39 0.84% 8.36%
L2050 $32.73 0.71% 6.94%
L2045 $14.91 0.67% 6.56%
L2040 $54.37 0.63% 6.20%
L2035 $14.34 0.58% 5.77%
L2030 $47.66 0.53% 5.35%
L2025 $13.14 0.31% 3.40%
Linc $25.60 0.24% 2.79%

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