explanade
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- Joined
- May 10, 2008
- Messages
- 7,450
If CD interest rates continue to rise throughout 2023 and into 2024, whatever your gains in higher CD rates would probably be offset by declines in equities.
Way more than offset, unless you're completely out of equities or at least anything that has tech holdings.
Someone made the point that we had like 40 years of ultra low interest rates since the '80s.
So people were driven to things like tech stocks since bank returns were nil, as were treasury instruments, for a long time.
In fact, after the Great Recession, some people were predicting the bond vigilantes would punish the govt. for the big stimulus bill and later QE.
Instead, around 2010, the greater fear was deflation, which central bankers feared more than inflation because there was no easy way to control plummeting prices.
Way more than offset, unless you're completely out of equities or at least anything that has tech holdings.
Someone made the point that we had like 40 years of ultra low interest rates since the '80s.
So people were driven to things like tech stocks since bank returns were nil, as were treasury instruments, for a long time.
In fact, after the Great Recession, some people were predicting the bond vigilantes would punish the govt. for the big stimulus bill and later QE.
Instead, around 2010, the greater fear was deflation, which central bankers feared more than inflation because there was no easy way to control plummeting prices.