Ah yes. Old people should just buy stawkes! It worked so well for them the last time. Fucking clueless.
no, old people should own stocks they have owned for many years I like that "Fucking clueless." That cracked me up. Who wrote that? Did you come up with that? Who writes your material?
You have a source on people over 55 that own stocks? % of the population, of course. If shoe fits...wear it.
In a global economy, the real return on CDs increases when the U.S. dollar appreciates relative to the currencies of our trading partners. There is nominal interest rate and there is real interest rate. Normally, real rate = nominal rate - inflation rate ; however an appreciating currency can mimic a lower inflation rate. So for those on fixed income or dependent on CD yield an appreciating currency is beneficial. (Very few retirees, if any, have their entire retirement portfolio in nothing but CDs.!) Given the present economic conditions, the Fed will most likely wait and monitor inflation, since the appreciating dollar is already doing the "heavy lifting" for them, so to speak. They don't have to raise interest rates right now. The U.S. has primarily a consumer driven economy. Only a small percent, ~13%, is export dependent. So an appreciating currency, on balance, should be good, rather than bad, for the economy. This effect will be bolstered by low crude prices, which are expected to remain low for a considerable period.
Almost the entire nation over 55 indirectly owns a portfolio of Treasury bonds, i.e., their part of the Social Security Trust Fund. In addition, many have supplemental retirement accounts in which a mix of assets are owned. So in reality there are a surprising number of folks over 55 that own at least some equities, though they may not even realize it. The recovery of the equities market was of great benefit to all sorts of retirement portfolios and pension plans. Some of this was smoke and mirrors driven initially by a depreciating dollar. One should never, however, underestimate the extreme importance of "perception" in its near-term influence on economies.
whatever, I have very little sympathy for anybody that goes all in and then complains when it doesn't work out, whether it is an elderly person who always just rolled over CD's or a 55 year old with 100% in the aggressive growth fund in their 401k. It aint my job to make changes because you didn't properly diversify.
http://www.barchart.com/quotes/futures/EDU15 See the reaction to the excellent January NFP on the Sep 2015 Eurodollar contract on approx 5Feb. Higher rate expectations were priced in but slowly walked back pre and post fed minutes. On the equity side , Nasdaq5000 and a fed reluctant(?) to BEGIN a tightening cycle. I dont think they want to bump rates once by a .025% and have to stop. That would be funny and Yellin wouldnt survive the ET flaming.
They won't be hiking like they want. Not unless macro data improves dramatically between now and then. You might see the language get more ambiguous with "patient" removed, but they're too afraid of the market. The market drives them now. They've become a slave to the monster they've created.