Feds Likely to Raise Rates - Yawn?

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mindofmush
Posts: 353
Joined: Mon Jul 02, 2012 1:38 pm

Re: Feds Likely to Raise Rates - Yawn?

Post by mindofmush »

I think the reason the market is not over reacting to Fed rate hikes is because the Fed is doing just what it said it would do: very small rate hikes, scheduled months ahead and only if the economic indicators warranted it. This kind of "transparency" makes these rate hikes a non-event.
mo meng, mo ching (which loosely means: no money, no life)

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cswift01
Posts: 819
Joined: Thu Dec 08, 2016 10:46 am

Re: Feds Likely to Raise Rates - Yawn?

Post by cswift01 »

mindofmush wrote:I think the reason the market is not over reacting to Fed rate hikes is because the Fed is doing just what it said it would do: very small rate hikes, scheduled months ahead and only if the economic indicators warranted it. This kind of "transparency" makes these rate hikes a non-event.
That's been my feeling as well.

I think you typically see a market knee jerk reaction whenever the federal reserve announces an increase whenever it is unexpected. That unexpected change is usually due to a bad indicator such as higher inflation than expected or some other shock.

On a similar note, did anyone see this?

https://www.marketwatch.com/story/analy ... 2017-12-04

That cracks me up because it shows how useless the market forecasters are in preparing for changes to the stock market.

This goes in kind to the reaction the market has with the federal reserve. It's unpredictable, unless information is disseminated causing a "yawn" in the market.

Enjoy,

Me

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