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What exactly happened? Seems like ever since Japan announced negative interest rates the stock market has made a rapid recovery.
Market realize that if other countries are going negative, US wont increase rates very quickly? plus they say negative could potentially be on the table here if the economy significantly worsened.
This could still be a top forming since we havent broke the previous high, but it is promising at least that this bull market might have more legs to come. I've been making a killing with SWHC.
All of the doom and gloom in the forums and on these click bait sites like Market Watch was deafening and now we're in positive territory for the year. LOL. Market timers might be learning a hard lesson. Although instead of blaming themselves they'll say that the market is "rigged".
It is funny how much more active richrf, jotucker, jimhcom, etc. all suddenly get in the investment/economics forums when the market drops, but man they sure do quickly lose interest in posting when the market goes back up.
When need a word for this species. Dip-posters? Gloom-bots? Correction-whores?
It is funny how much more active richrf, jotucker, jimhcom, etc. all suddenly get in the investment/economics forums when the market drops, but man they sure do quickly lose interest in posting when the market goes back up.
When need a word for this species. Dip-posters? Gloom-bots? Correction-whores?
They are just taking some R&R, gathering their strength for the next market drop. They will then be back in full hue and cry about how it is the true market crash they have been predicting over and over.
What exactly happened? Seems like ever since Japan announced negative interest rates the stock market has made a rapid recovery.
Market realize that if other countries are going negative, US wont increase rates very quickly? plus they say negative could potentially be on the table here if the economy significantly worsened.
Seems to me it's the other way around. If negative rates were here to stay, that's BAD for stocks. Everyone is thinking too short-term with respect to interest rates. In the short-term, rising rates may be bad for stocks, but in the long term, they represent a healthy, growing economy and that's good for stocks. The reason for the recovery has more to do with the fact that deflation now looks unlikely in the U.S. The Fed may not have raised rates, but they didn't lower them either and that's far more important.
2016 however looks like a replica of 2015. 2015 started off looking deflationary, and Treasury yields fell. Then in late spring, yields shot back up along with oil prices. Then in the fall, yields fell again.
I don't think the 1970s bear market with rising rates has anything to do with today's situation. In the 1970s, the Fed hiked rates rapidly and violently to control runaway inflation. Today, the Fed is seeking to create inflation and gradually raise rates along with it.
They are just taking some R&R, gathering their strength for the next market drop. They will then be back in full hue and cry about how it is the true market crash they have been predicting over and over.
It is interesting to look at the DOW over a year. Is it about time for the market to drop? How much up side from here? How much up side from the influx of money from Japans negative interest rates?
Interest rate increases are confirmed limited , manufacturing is picking up and is at the highest level since last jan 2015 .
The dollar is down 5% since last year and corporations are winning more bids and contracts so profits are expected to rise.
Oil is up in the 35-40 dollar range.
Stocks are bid back up for quite a few reasons as investors expect better earning reports
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