Interest rates

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extra123
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Interest rates

Post by extra123 »

Sol,
I haven't found much material about TI's view on interest rates and their impact on stock prices. Considering the 10 yr rate has increased quite significantly over the past few days and the mass media is attributing that to the decline in stock prices, I was wondering if you can share your opinion on this topic (Others are welcome as well, of course). Were you anticipating this rise? Is it just noise and an opportunity to buy at lower prices because the trend is positive?
My opinion is that the mass media will always state some reason as to why there are drastic moves but they don't really know, and that these dips are buying opportunities.
Thanks
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SOL
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Re: Interest rates

Post by SOL »

Everything goes up and then down, so interest rates will rise and then most likely pullback. A lot of noise is being made over nothing. Even if they rose to 3% it would be a non-event, but experts always have to find crap to push, otherwise, how would they make a living. They are in the business of selling fear. The bond market is overbought so by logic it will pullback before mounting another rally.

There is so much debt in the world that the Feds will never allow the bond markets to price interest rates fairly. And lets not forget the massive deflationary pressure that will come when millions and millions of jobs are eliminated in the developed nations such as US, Canada, oz, most of western Europe etc and all these jobs are replaced with AI and robots that will cost next to nothing in comparison to paying humans
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Triplethought
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Re: Interest rates

Post by Triplethought »

SOL wrote: Fri Feb 26, 2021 3:15 am Everything goes up and then down, so interest rates will rise and then most likely pullback. A lot of noise is being made over nothing. Even if they rose to 3% it would be a non-event, but experts always have to find crap to push, otherwise, how would they make a living. They are in the business of selling fear. The bond market is overbought so by logic it will pullback before mounting another rally.

There is so much debt in the world that the Feds will never allow the bond markets to price interest rates fairly. And lots not forget the massive deflationary pressure that will come when millions and millions of jobs are eliminated in the developed nations such as US, Canada, oz, most of western Europe etc and all these jobs are replaced with AI and robots that will cost next to nothing in comparison to paying humans
Stocks are going down again in the morning. Don't sell and hang tough boys. This is exactly what SOL told us would happen.
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AstuteShift
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Re: Interest rates

Post by AstuteShift »

The rates are rising and stocks can’t go up and up forever

This is what we want, interest rates is just noise and it will go down since we are in a currency war just the US has the world reserve currency so interest rates will go negative last.

It’s just an illusion from the FED however they know this and will exploit it to the max

The masses will panic and TI will celebrate :mrgreen:
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