As some point the US economy is going to pick up again rapidly. Currently housing is poor and and economic gropwth is very slow. but eventually there will be signs of resurgence and when that time comes there will probably be a rate hike of anywhere from .25 to .75 point in the next few years, as has been the case all over the world as emerging markets have boomed. It seems foolish to assume the US economy isn't going to pick up because it will as it always has in the past. These necessary rake hikes will will cause a kneejerk painful selloff of 10-15% or more of all the indexes which may last a year. At some point, investors will realize that low rates don't mean everyting and that economic growth is actually a positive; not a negative. The dollar will rise along and so will the market. Trying to time when this will happen is very difficult but there will probably be a rate hike of .25% within a year. After the market regains its bearings the rally which began in October 02 will continue in full force. Sometimes I wish the fed would just raise rates by a quarter point to get it over with. It would be such a refeif even though it would trigger a selloff.
With all due respect, who has the TIME to make such a long-winded post with all of this great TRADING VOLATILITY? :eek:
Please dont clog up the trading forum, you are not a trader, you're an investor so start your threads in the economics or chit chat sections. This forum is for TRADERS not INVESTORS.
The SP500, INDU are completing the third failed rally, so either a tripple top, head and shoulder, whatever...soon a sell off is here in in the next 60 days.
The fed keeps saying inflation is a concern and if economic growth picks up (which I'm sure it will) it will only become a bigger concern. Trying to time when this will happen is very hard.
I'm sure i've read 1000+ "risk free trading" posts and so on, but it's not exactly like he's a menace to this site, all things considered. Meh, on with the bickering.... TNG