Wednesday, October 28, 2015

THE BEAR MARKET

Good day
The US markets are poised to set the pace for three percent gains this falls. Suddenly talks of interest rates are meeting to meeting. Question? Why hasn't the federal government raised its prized interest rates?
Very good question. Many would argue that due to liquidity in financial markets and financial products as financial regulation in the form of Dodd Frank reform are stabilizing markets and allowing financial institutions to gradually recover from the shock of embarrassment.
As the smoke clears and the dust settles it is obvious that the US markets is headed in a positive direction. So why the need to raise interest rates. The US Dollar is enjoying being floated if you will as the federal government is seemingly counteracting its opposition as the US Dollar is stable. If rates gets raised the Dollar will indeed fluctuate creating opportunity in many realms of investment including currency markets. At the end of the day an organized orderly US Dollar is the way the largest economy with the worlds leading currency is the way to lead.
As the interest rate talk looms again again as it has for the past two years the economy is seen as getting stronger. Keeping in mind the markets are getting higher and also that the markets and the economy are two different beast a fact that is more often than not overlooked by investors when an interest rate hike kicks in at the quarter percent basis i point and especially if two or more follow in pattern the market will jolt. This is observed in 2008 as the past administration went to the same thing as the government transitions from old to new. When could the economy expect a rate hike. Let's just say not in 2015. The federal government hiking rates at a time like this will create an optimistic atmosphere but in an age of technology growth it will cause plenty of action in the airwaves during a possible lamb duck session and when the country is at the mercy of cyber attack.
With slumping energy its Merry X mas in the US.
Stocks to watch for the Bear market push are Facebook , Delta Airlines, Goldman Sachs, the Q's, and Disney. Thank you and have a great day.

THE SMART INVESTOR SOCIETY is member of the IZ CORP EXCHANGE.

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