Warning; Fed Interest Rate Hike – Watch the markets

[Y_Participant 4591]

The Fed raised interest rates overnight by 0.25%.
Last time they did this exactly a year ago the markets almost crashed.

Asian markets : Down
Wall Street : Stocks had their worst day in two months after the Fed’s announcement, and four stocks fell for every one that rose on the New York Stock Exchange

Be ready – just in case.

[bladeParticipant]

Herd on the radio here in oz this morning that the Aussie dollar was at 74 cents . Whats happening with India i wonder .

THE PLANTATION HAS NOW TURNED INTO THE KILLING FIELDS . WOMAN ARE NOW ROLLING CAMBODIAN STYLE .

[Anonymous 0]

Y_ wrote:

The Fed raised interest rates overnight by 0.25%.
Last time they did this exactly a year ago the markets almost crashed.

Asian markets : Down
Wall Street : Stocks had their worst day in two months after the Fed’s announcement, and four stocks fell for every one that rose on the New York Stock Exchange

Be ready – just in case.

Always a little scary when the Fed starts “taking away the punch bowl.” At a minimum, it probably marks a market top for a while. You know what they say: “Don’t fight the Fed.”

[Y_Participant 4591]

Ah yes – India – I am writing something on that topic this weekend.
A really sad tale.

[Anonymous 0]

Possibly a way to strengthen the dollar?
Keep bubbles from forming…

Yeah, I agree.

On the short-term, raising interest rates is going to make the markets a bit unstable. We’re in for a rocky patch over the short-term.

But on the long-term, it’s probably good for the Fed to raise interest rates a bit. We’ve had abnormally low interest rates for many years now because the recovery from the last recession was so slow. So sooner or later it’s necessary to raise interest rates back to higher levels.

On the long-term, I think the markets are basically still solid. I’m a buy-and-hold sort of guy, so I’ll just weather the short-term and not worry about it. In fact, if the stock market drops by 10%, I’ll probably just use that as a buying opportunity.

Here’s an old post I made at MGTOW six months ago about how I see the long-term: /forums/topic/investment-ideas-for-beginners/#post-253989

It will be interesting to see how Trump gets things rolling.

I’m trying to understand the angle that he has with the Jews in Israel.
But I think he is good…just look at all the real estate…they liked to loan him money.

Trump should have no problem dealing with interest-rate fluctuations. He’s a real-estate magnate, and real estate is all about working with interest rates for financing.

Interest rates are definitely a strong point with him. Trump should have no problem adjusting to interest-rate fluctuations and working with the Fed.

[BeerParticipant 11832]

Y_ wrote:

The Fed raised interest rates overnight by 0.25%.
Last time they did this exactly a year ago the markets almost crashed.

They went up the last time the fed raised rates.

My money is on real estate and gold…gold I keep out side of the United States.

higher rates = stronger dollar

stronger dollar = cheaper gold

I wouldn’t put a dime in gold right now.

Anonymous wrote:

I’m a buy-and-hold sort of guy, so I’ll just weather the short-term and not worry about it. In fact, if the stock market drops by 10%, I’ll probably just use that as a buying opportunity.

This is what the smart money will do. I’ve got some cash I pulled out recently when financials went crazy and I’ve been waiting for a good point to put it back in…if we get a nice dip for no real reason I can’t wait to buy back the same s~~~ I sold a month ago at a discount, or perhaps pick up something different at a discount. We are talking about going from .25 to .5 interest rates…its still at historic lows and its only going to impact future debt, it doesn’t change anything businesses have on the books right now.

If you look past the knee jerk reaction to the change in rates we will have short term, whether it be up or down, Trump wants to have a tax holiday for companies to bring money back from overseas and lower corporate tax rates. If those things don’t spur massive stock buybacks and profit increases, I don’t know what will.

[Y_Participant 4591]

Beer wrote
They went up the last time the fed raised rates.

Sorry. The Dow went from 17720 points on 29 Dec 2015 to 15766 points on 20th Jan 2016 – drop of about 11%.

The initial phase between 15th Dec 2015 when the rate was announced to 29th Dec 2015 was a typical up-down trend before the rate rise really kicked in. Then all hell broke loose.

That’s what they get for tightening into a weak economy.

https://www.theguardian.com/business/economics-blog/2016/jan/15/janet-yellen-federal-reserve-interest-rate-blunder

[LurchParticipant 3866]

Well I guess it’s time to stock up on precious metals.

Some choose silver, some choose gold… as for me I choose brass! As in 9mm, .40 S&W, .45 ACP and 5.56x45mm brass.

When SHTF you can’t stop an attacker with a stack of silver/gold coins, but you can with a full clip of FMJ or Hollow Point ammo.

Blue-Pill Virgin: Women hate me! That's what it is.
MGTOW Man: Hate them back; it works for me.

[PraetorianParticipant 139]

Lurch wrote:

Well I guess it’s time to stock up on precious metals.

Some choose silver, some choose gold… as for me I choose brass! As in 9mm, .40 S&W, .45 ACP and 5.56x45mm brass.

When SHTF you can’t stop an attacker with a stack of silver/gold coins, but you can with a full clip of FMJ or Hollow Point ammo.

Having a good supply of both is even better.

[PistolPeteParticipant 27143]

Possibly a way to strengthen the dollar?

Problem is as the dollar increases in value our exports become more expensive and imports cheaper so this hurts the trade imbalance.

I don’t know if Yumbo will agree with me but buying gold and silver in small amounts is a waste of time and energy. The ONLY way this strategy makes sense is:

a) The economy collapses into depression, and the money supply dwindles
b) Then if you have significant gold/silver on hand you can buy up land etc. Because its very cheap and no one else has much money.

Remember the Government can CHOSE to confiscate gold/silver if it chooses to do so. Please refer to: https://en.wikipedia.org/wiki/Executive_Order_6102

[SolidusXParticipant 854]

Lurch wrote:

When SHTF you can’t stop an attacker with a stack of silver/gold coins, but you can with a full clip of FMJ or Hollow Point ammo.

Stuff that gold and silver in a sock and start swinging lol

Knowledge is power..... Don't waste your brain on bullshit

[KevinStylesParticipant 2580]

Well that’s cool since I was looking at getting into the market anyhow, always best when you have money to funnel in during a crash 🙂 Missed my opportunity in 08 🙁

[BeerParticipant 11832]

Y_ wrote:

Sorry. The Dow went from 17720 points on 29 Dec 2015 to 15766 points on 20th Jan 2016 – drop of about 11%.

The initial phase between 15th Dec 2015 when the rate was announced to 29th Dec 2015 was a typical up-down trend before the rate rise really kicked in. Then all hell broke loose.

That’s what they get for tightening into a weak economy.

If you look a couple months BEFORE or after the last rate hike…markets were lower than when they raised it. If you look back/ahead a few more months in either direction the market was closing over 18k. I really don’t see where all hell broke loose when less than a year later the Dow was breaking record highs…and well…I’m not investing with a 1 month outlook.

People just have a knee jerk reaction to news…and realistically whatever effects higher interest rates have aren’t even going to show at all until the next quarters earnings reports…and in the case of a .25% rate hike its nothing noticeable.

Look just to put it in perspective for people who don’t know…

How much impact do you really think going from .25% to .5% will have when we are still at a lower rate at any point in history excluding the last decade? The economy managed to grow when interest rates were double digits…do you really think .5% is going to cause a meltdown?

If they keep raising rates I think we’ll hit a point where investments like cds and bonds become a bit more worthwhile and people will start moving money out of the markets, which might move the market down a bit but won’t really have any impact on the actual economy, and I think we’ll hit a point where companies slow down on the borrowing and buybacks in favor of paying down debt and funding growth from revenue rather than ridiculously cheap loans…I just don’t think .5% is going to be the tipping point.

[Y_Participant 4591]

@ Beer

Thanks for responding and it’s a pleasure discussing this. I would like to take this further but too tired. I hope you can revisit this thread for when I get my act together for why I think this way.

Be well and a Merry MGTOW Christmas to you. 🙂

[Y_Participant 4591]

Hi Pete Bro

I think a very small amount of gold / silver change is useful to get out of trouble in the initial stages of a food shortage or riot etc. It is the only thing people would accept. Or else bribe someone for something or cross a border (if they close state borders or maybe you want to leave the country).

If (say) gold goes to $10 000 and you bought an ounce at $1100 that would give some breathing space.

Silver would be better in my view and will overtake gold,
At $16 / oz a Silver Eagle may go up to $250 minimum and upto $750 possibly.

A couple silver pieces don’t cost all that much but may be a game changer to get someone out of trouble, is my opinion.

As for confiscation it has never worked in the past. In India now even after it was deemed illegal and confiscated people are ignoring the government. Nothing much the authorities want to or can do.

Hope this helps.

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