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Thoughts on the Fed Rate increase?
Old 12-16-2015, 09:58 AM   #1
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Thoughts on the Fed Rate increase?

Now almost exactly one year out from FIRE, I would just LOVE to see my investments do SOMETHING. Seems they have been stuck in neutral for what, 4-8 months? I hear a lot about the Feb interest rate increase (newswires today) and generally feel that it will be a good thing, and a sign that the economy has truly "turned the corner". I have been somewhat eager about this day... but I also still see a lot of skittishness in the global economy. Love buying gas for under $2/gal too, but also know there are consequences to that as well.

What are the forums thoughts on the effect of the fed interest rate raise and the outlook for 2016?
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Old 12-16-2015, 10:17 AM   #2
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Aside from some temporary wailing and gnashing of teeth, I expect the eventual rate increase to be a non-event.

As for prognosticating the market in 2016, or any year, I have no idea. I don't, however, see a catalyst for big gains...
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Old 12-16-2015, 10:27 AM   #3
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I'm just glad they are finally doing it (I think). The specter of it hanging out there has been worse than what I believe the actual event will be.

Seem like every time she opened her trap about a possible rate hike the markets would tank. Guess now she can talk about how many times it will be raised in the future and at what frequency.
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Old 12-16-2015, 01:01 PM   #4
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There is no way to know what is going to happen because it is expectations that drive markets and years of zero interest rates and now there is an interest rate causes changes in expectations
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Old 12-16-2015, 01:07 PM   #5
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So it's up. Can't wait until our europeean banks do the same.
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Old 12-16-2015, 01:09 PM   #6
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It's about time. Should have been done a year ago. I'll breath a sigh of relief when they finally get it back to 3-4%.
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Old 12-16-2015, 01:09 PM   #7
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One thing for certain...markets will be volatile for the foreseeable future.


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Old 12-16-2015, 01:12 PM   #8
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One thing for certain...markets will be volatile for the foreseeable future.


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like they have been in the past and will always be. . . . . .
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Old 12-16-2015, 01:28 PM   #9
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Wells Fargo just announced they will not increase deposit rates...But hey, they did immediately raise the prime rate though. I guess we know who profits from the rate increase.


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Old 12-16-2015, 02:15 PM   #10
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It's about time. Should have been done a year ago. I'll breath a sigh of relief when they finally get it back to 3-4%.
Anyone want to bet that we'll see zero again before we see 3% ?

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Old 12-16-2015, 02:20 PM   #11
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Anyone want to bet that we'll see zero again before we see 3% ?


I will take the near layup bet... And the quicker they try to raise it, the better the odds it happens


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Old 12-16-2015, 02:21 PM   #12
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Market is reacting positively, so far...
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Old 12-16-2015, 02:24 PM   #13
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It's only .25%, but longer term higher interest rates will be bad.

The USD will get stronger. Oil will get cheaper. Consumer prices will come down further. Jobs can be done overseas for less money. Bonds will be worth less. International stocks worth less.

And consumers will see an extra .01% in their savings accounts...
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Old 12-16-2015, 02:42 PM   #14
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thoughts? meh non-issue
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Old 12-16-2015, 03:29 PM   #15
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like they have been in the past and will always be. . . . . .
Nonono! This Time It's Different! <vbg>

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Old 12-16-2015, 03:31 PM   #16
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No one except the Banks will benefit from the rate hike. All banks are going to increase their lending rates, and no one will increase their savings rate or their CD rate. The owners of the big rich banks are very happy. As usual, consumers with high debt are in the poor house.
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Old 12-16-2015, 05:22 PM   #17
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Anyone want to bet that we'll see zero again before we see 3% ?

Me.
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Old 12-16-2015, 05:28 PM   #18
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Most fund family's were paying the fees on their money market funds.

The increase will just go to support the fund expenses.
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Old 12-16-2015, 05:31 PM   #19
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Wells Fargo just announced they will not increase deposit rates...But hey, they did immediately raise the prime rate though. I guess we know who profits from the rate increase.


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Who profits? Preferred stock holders.
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Old 12-16-2015, 05:43 PM   #20
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Me.
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