She is right. The markets do well in rising interest rate environments too. The problem is they have a better chance at seeing Santa Claus than that.
“We’ve been fighting inflation that’s too low and interest rates that are too low now for a decade,” she said. She added that if the packages help at all to “alleviate things then that’s not a bad thing — that’s a good thing.”
The thing is they still have no understanding of why, after a decade of throwing everything at it, they were still fighting low inflation. Completely clueless as to why it happened.
Mark my words, they will be clueless once again when the commodity run ends and they face a massive deflationary onslaught.
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Well deflation is definitely going to be an issue given the speed at which technology improves. I am wondering when the tapering will start and whether the markets will throw a tantrum.
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They will. The economy will also take a hit. It is not strong enough to have the stimulus pulled. However, the sentiment is to reverse course, which they will do. Give it 6 months and we will see the situation slapping these people in the face.
It was a point in made in my post about oil. I am watching that closely.
By the way did you see this? It might be short term but that is a heck of a pullback. Sure it is just one commodity but a greater than 25% drop in a few weeks is a big move.
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Oh I didn't see the pull back but it was kind of expected. Personally I see a dip prices because the dollar is at a key zone and could pop.
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