That's very possible but once they start cutting the short term rates they will drop fast
dow jones
- Thread starter Jkloc420
- Start date
Why would they drop fast? The Fed will be very measured in what that do. They're interested in inflating away the national debt. The ones who are getting crunched are those living on fixed incomes with no cola.
Once the FED starts cutting rates the short-term rates get chopped first
Hope so!
Up In Smoke
Well-Known Member
If short term rates fall beneath stock dividends, we create an unhealthy investment balance.
Just saw where IBM is ending it's 401k program. If that catches on the stock market goes in the toilet.
Up In Smoke
Well-Known Member
401Ks make up less than 20 percent of the market, if I remember correctly.
We shall find out
Ask the New York Stock Exchange if they'd like a 20% reduction in investment.
Up In Smoke
Well-Known Member
15-18 percent of traded stocks are delisted each year. IPOs take up the slack and the markets chug along.
But the delisted ones aren't the Blue Chips. Ask them if they're willing to lose 20% of their value.
Up In Smoke
Well-Known Member
I see 5 of the largest banks have 25K call options on the January contracts.
Up In Smoke
Well-Known Member
Contracts on the S&Ps
newolddude
Well-Known Member
S&P 500 rises to highest close of 2023 amid rate cut optimism
The S&P 500 index closed at its highest level of the year amid growing optimism the Fed was done raising U.S. interest rates.
Thebrownblob
Well-Known Member
Time to rebalance...
Thebrownblob
Well-Known Member
Nothing wrong with walking in a little bit of the gains
Thebrownblob
Well-Known Member
Hard to know when the cliff is coming
I can't afford that right now
