Rate Hike Synopsis
On January 11, the market expected the terminal interest rate to be about 5.0 percent in May. By December, the market expected the Fed to cut rates to a range of 4.25 per cent to 4.50 percent.
Over the past month, the market ratcheted up rate hike expectations significantly.
As of February 27, the market expects the terminal interest rate to be about 5.5 percent in July. By December, the market expects no more than an eighth of a point cut to a range of 4.25 per cent to 5.00 percent.
Question of the Day
Do you want to hold stocks or is 5.00 percent guaranteed enough?
At an individual level, you have a choice.
In aggregate, there is no choice nor any possible escape.
No matter what the price, someone must hold every share of stock perpetually.
What About Bitcoin?
For discussion, please see Why Bitcoin Won’t Reach Mass Adoption Ever: A Three Generations Theory Rebuttal
I present three points of view. There’s something for everyone to like and hate.
This post originated at MishTalk.Com.
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Mish
Lenin once
pontificated to the effect that he would destroy capitalism, and presumably
capitalists, by making their money worthless.
Inflation cannot
destroy real property nor the equities in these properties, but it can and does
capriciously transfer the ownership of vast amounts of these equities thus
unnecessarily accelerating the process by which wealth is concentrated among a
smaller and smaller proportion of people.
The concentration
of wealth ownership among the few is inimical both to the capitalistic system
and to democratic forms of government. A financial oligarchy and a government
of, by, and for the people, simply cannot exist side by side.
Question of the Day
Do you want to hold stocks or is 5.00 percent guaranteed enough?
At an individual level, you have a choice.
It seems to me the whole secession thing is something politicians use to motivate the far right. Just like election fraud and you see where that has got them. Imo the whole idea is over blown. If it came down to it its still in the majority of peoples interest to stay united. But who knows in these crazy times.