"Interest rates act on asset values like gravity works on physical matter," he said. "If you had zero interest rates and you knew you were going to have them forever, stocks should sell at, you know, 100 times earnings or 200 times earnings." - Warren Buffet http://www.cnbc.com/2016/04/29/buff...stock-in-icahns-market-reckoning-warning.html
Oil up 20% in April....wonder when they are going to start raising prices on goods and services to keep up with this rally in oil.... With the dollar completely falling apart something is going to give sooner or later....again let's thank the fed for their fine work they do by keeping rates at historical lows and pumping money to every nook and cranny of this economy.... Thank you yellen and friends ...
The dollar hasn't really fallen apart. DXY down 8% from recent prices. No chump change for sure, but keep things in perspective. Not it goes to 80 and you will see the white in people's eyes.
It hasn't, but the steady decline in the past couple of months from 100 to around 93 has me following the move even closer now....
Nikkei is tanking......almost under 16,000...talk about volatility.... I would gladly welcome that volatility here on wallstreet.... Down nearly 4%....futures tonight are barely moving which is quite interesting considering nikkei is down heavy.
Billionaire investor Warren Buffett told CNBC on Monday just how important interest rates are to stock investing. "If the government absolutely said interest rates are going to be zero for 50 years, the Dow would be at 100,000," Buffett told "Squawk Box," stressing he was speaking hypothetically. The Dow Jones industrial average closed at 17,773 on Friday... http://www.cnbc.com/2016/05/02/buffett-says-if-the-government-did-this-the-dow-could-hit-100k.html
If countries cared, the dollar would have weakened far more than it did on this news, imo. If in fact the FED will intervene and sell dollars to prove that it means business, then people will pay attention. Until then, the roar is bigger than the bite. Imo, the DXY should have dipped below 90 on the news, with oil going to $47. The US just dropped the hammer on currency manipulation The U.S. government is sending a message to countries it believes are manipulating their currencies: We're watching you. A Treasury report targets five countries in particular: China, Japan, Korea, Taiwan and Germany. Each meets at least two of the three criteria that "determine whether an economy may be pursuing foreign exchange policies that could give it an unfair competitive advantage against the United States." At a time when currency devaluation has become a major tool used by multiple countries to stimulate growth, the U.S. is looking to protect its own interests. The report is an outgrowth of the Trade Facilitation and Trade Enforcement Act of 2015, a bipartisan effort aimed at stemming the global race to the bottom. The criteria to determine whether a country should be on the "Monitoring List" of countries using unfair currency practices are: a trade surplus of larger than $20 billion, or 0.1 percent of U.S. GDP; a trade surplus with the U.S. that is more than 3 percent of that country's GDP; "persistent one-sided intervention," defined as purchases of foreign currency amounting to more than 2 percent of the country's GDP in a one-year period. No country meets all three criteria, according to the report, though the five on the list meet at least two.... http://www.cnbc.com/2016/05/02/the-us-just-dropped-the-hammer-on-currency-manipulation.html