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Monday, October 29, 2018

Warning: The Fed is Not Going to Rescue Stocks This Time

For those who think the Fed is going to “save stocks” think again.

As I repeatedly have warned throughout 2018, the Fed is FAR more concerned about BONDS, than stocks.

When stocks collapse, investors lose money.

When bonds collapse, entire countries go broke.

With that in mind, once the US bond market began to collapse, pushing yields above their long-term trendline, it became apparent that the Fed would “sacrifice stocks to save bonds.”



Anonymous said...

I'm not to embarrased to say I don't know what this means. I figured out that if bonds do broke it affects countries. And how is this happening would be nice to know. Are we talking about individual stocks or large companies. One confused dude - any others?

Anonymous said...

Interest rates have to go up to help senior citizens on fixed income, or the Fed. Government will have millions of senior citizens on fixed income not being able to afford to live.
And we will demand more gov. assistance. Considering I'm a senior citizen, I'll take all I can get for free if interest rates don't go up. It's time I have some extra money to spend like all you fat cats on wall street.
I would love to see the market go down 10,000 points and interest rates like the 80's (15 percent for all you that were not alive then). Then I'd be a fat cat.

Anonymous said...

Are we talking interest rates or stock and bonds. I would like to see this country great again not just for a certain type of people. Seniors do have a fixed income but you better believe baby boomers got a lot from deceased parents and are doing very well. Not all but alot. Just check out Florida. A lot of old people with Mercedes on the Gulf coast not to mention Miami.

Anonymous said...

7:56 don't know what planet you live on but here on this planet I see lots of baby boomers taking care of their parents. And no they are not living lavishly! In fact it cost me dearly to take care of our parents!
i drive a merc but then I had to get an education a job and pay for it all myself!
What my parents did give me though was a great work ethic and the ability to see I am responsible for myself and those around me! Sounds like something you haven't learned yet!

Anonymous said...

If you take the time to look into it you may find that those old people with Mercedes are retired GOVERNMENT employees...

Anonymous said...

"Irrational exuberance" is what is going to doom stocks all over again. History just repeating itself.