Feds Goiny to raise rates today

I hear a quarter of a percent

 

GOINY

 

GOINY

 

Is he talking about the Goonie's

 

a whole quarter of a percent. hardly a rate raise.

 

In the past 30yrs (360 rate periods) the Fed has raised rates by over a quarter point in a single month only 15 times, the last time was during the peak of the dot-com bubble in first half 2000. Source

I expect more gradual rate hikes coming because the goal is to normalize rates and not to create a market cool off.

 

and the markets are flipping their collective shits.

 

Well, I'm selling everything and moving to goiny.

 

Yea the Fed is going to realize soon their plan is failing, and will have to either lower rates back to virtually 0, or go into QE4.

 

US economy is out performing ours right now

 

The issue I have with this is that we're talking about a quarter of a percent here. Fed rates used to be well over 10%. Now they're raising it from 0.25 to 0.50. Seems like the whole economy is built on a house of cards.. especially when everyone is already freaking out about another recession after a tiny uptick in interest rates.

 

ouch!

 

Exactly. Goes to show that the fed doesn't know what they are doing.

 

I thought everyone was flipping out because China is doing terrible, oil prices are falling causing consumer prices to fall. The 2nd largest economy in the world isn't doing well....so everyone is going down. Can't sell iPhone to the Chinese if they can't afford them, I guess.

 

It shouldn't be a surprise that their GDP increase is decreasing (if that makes sense). Emerging economies will always have a period of slowing growth... it's inevitable. I just find it a little surprising that all of this is happening not long after the Fed announcement. After a rate hike, everyone is quick to pull out the "this is how long it usually takes for a recession after a rate hike" chart. But we are talking about a 0.25% increase. I mean, really? A recession from that? Banks are getting essentially free money from the Fed, so they aren't encouraged to save at all. Spend spend spend. So then we have to have all of this QE nonsense just to keep the status quo in tact. It's ludicrous and is driving inflation through the roof.

As for oil, Iran deal has lifted sanctions and OPEC is giving them a run for their money. All politics.

 

I've been buying stocks a little at a time over the past 3 weeks. Maybe I'm an idiot, but I feel like it's gotta bounce back at some point.

 

What industries?

 

Indexes...VTI and a few others.

 

I'm no expert but I'd hold off on making any more buys until the volatility settles. At least with a big market index you'll be less resistant to huge swings.

 

Seems like a buying opportunity. I'm not buying into risky companies. I'm betting that it won't sell off a ton more. Even if it does, I'm in no hurry so I can wait for it to come back up. In 2008, everyone sold their stocks and in doing so, lost a ton of money. Had they kept their stock and waited, by 2010 they would have had recovered all their loses. By 2012 they would have seen big gains.

Buy on the way down, sell on the way up. Maybe I'm simplifying that too much.