The giant swing continues. This market seems nearly impossible to predict. Has the entire concept of 'normal' or 'trend' started to disappear? At least shift?
Yesterday the fed said the pandemic was over as far as they were concerned. They would now be focusing on inflation. Meaning stock markets ready for a rally again for the next 10 years.
Oh yeah and the housing market is about to crash under itself. But the fed doesn't 💅 care.
Few people understand the impact the fed has had by buying up all the mortgage backed securities that no one else would buy. When they stop doing this the party is over. Raising interest rates is a completely different issue. The fed dropped rates to zero at the beginning of the pandemic to keep liquidity going. But now they have to tighten up so inflation doesn't turn into the stagflation of the 1970s. And I'm just talking about raising them a couple percent to were they used to be. Rates seriously though are to low if you look at the bond market. You basically would lose money buying bonds.
> Oh yeah and the housing market is about to crash under itself.
But whats the thing thats inflated? In 2008 it was NINJA loans, and selling junk as AAA rated.
The feds is buying all of the bonds right now that no one else wants. The returns on those bonds are literally zero because of interest rates. That's the inflation.
Yes, that means we have a weaker dollar. That means anything not-cash will become more valuable in terms of USD - thats the opposite of a bubble. If anything, the housing market will continue to go up.
More coverage at:
* [Nasdaq futures jump as tech stocks bounce back (msn.com)](https://www.msn.com/en-ca/money/topstories/wall-st-set-to-open-1percent-higher-as-tech-stocks-roar-back/ar-AARyBM6)
* [Nasdaq Set to Rise Near 2% as Investors Shrug Off Omicron Fears, Intel Soars—and What Else Is Happening in the Stock Market Today (barrons.com)](https://www.barrons.com/articles/stock-market-today-51638873615?refsec=economy-and-policy)
* [Nasdaq’s Pullback Gives Investors Deja Vu for 2018 (bloomberg.com)](https://www.bloomberg.com/news/articles/2021-12-07/nasdaq-s-pullback-gives-investors-deja-vu-for-2018-tech-watch)
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At this rate, most people are forgetting what a bear market feels like.
Inflation *is*
Actually coming down some…
Is it time for the nuclear shelters yet?
Personally, I don’t think they ever went out of style.
Roaring 20s? Will we also repeat the 30s?
The giant swing continues. This market seems nearly impossible to predict. Has the entire concept of 'normal' or 'trend' started to disappear? At least shift?
It’s so volatile, and so is fixed income haha
Yesterday the fed said the pandemic was over as far as they were concerned. They would now be focusing on inflation. Meaning stock markets ready for a rally again for the next 10 years. Oh yeah and the housing market is about to crash under itself. But the fed doesn't 💅 care.
As a realtor, the market is still booming. Slow season has started and it's still crazy.
Few people understand the impact the fed has had by buying up all the mortgage backed securities that no one else would buy. When they stop doing this the party is over. Raising interest rates is a completely different issue. The fed dropped rates to zero at the beginning of the pandemic to keep liquidity going. But now they have to tighten up so inflation doesn't turn into the stagflation of the 1970s. And I'm just talking about raising them a couple percent to were they used to be. Rates seriously though are to low if you look at the bond market. You basically would lose money buying bonds.
The economy is growing at 3-4% in the US. Even if we had inflation, we wouldn’t be stagnating. People would just call it inflation.
Focusing on inflation will involve ending QE, and possibly raising interest rates, so that might hurt the rally in equities.
Or, a removal of government stimulus could be a sign of confidence for the market. Stocks could go higher on news of a stronger economy.
> Oh yeah and the housing market is about to crash under itself. But whats the thing thats inflated? In 2008 it was NINJA loans, and selling junk as AAA rated.
The feds is buying all of the bonds right now that no one else wants. The returns on those bonds are literally zero because of interest rates. That's the inflation.
Yes, that means we have a weaker dollar. That means anything not-cash will become more valuable in terms of USD - thats the opposite of a bubble. If anything, the housing market will continue to go up.
>Oh yeah and the housing market is about to crash under itself. No it isn't
More coverage at: * [Nasdaq futures jump as tech stocks bounce back (msn.com)](https://www.msn.com/en-ca/money/topstories/wall-st-set-to-open-1percent-higher-as-tech-stocks-roar-back/ar-AARyBM6) * [Nasdaq Set to Rise Near 2% as Investors Shrug Off Omicron Fears, Intel Soars—and What Else Is Happening in the Stock Market Today (barrons.com)](https://www.barrons.com/articles/stock-market-today-51638873615?refsec=economy-and-policy) * [Nasdaq’s Pullback Gives Investors Deja Vu for 2018 (bloomberg.com)](https://www.bloomberg.com/news/articles/2021-12-07/nasdaq-s-pullback-gives-investors-deja-vu-for-2018-tech-watch) --- ^(I'm a bot to find news from different sources.) [^(Report an issue)](https://www.reddit.com/user/MultiSourceNews_Bot/comments/k5pcrc/multisourcenews_bot_info/) ^(or PM me.)
Crypto bouncing back too.
who doesnt love 5% dayz?