Stock Market/Investing/Fin Planning Catch-All

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ChapelHillSooner said:
Let’s say Powell was fired and the new fed chair tried to lower rates. They could lower the fed funds rate but could their attempts to lower other rates fail as people flee US dominated debt?

They could buy treasuries but if people started fleeing those treasuries wouldn’t that drive up the interest rates anyway?

Inform me please.
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The fed has a lot of tools available to manipulate rates. The problem isn't the rates - it's how those tools can lead to other problems in the economy most notably runaway inflation.
 
ChapelHillSooner said:
Let’s say Powell was fired and the new fed chair tried to lower rates. They could lower the fed funds rate but could their attempts to lower other rates fail as people flee US dominated debt?

They could buy treasuries but if people started fleeing those treasuries wouldn’t that drive up the interest rates anyway?

Inform me please.
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1. The Fed is thought to have control over short-term rates through its open market operations. Long term rates, not really. One model of long-term rates is to think of them as a series of short-terms. Thus, if the market thinks a recession is coming, the market then thinks the fed will lower rates in the future and thus long-term rates can plunge below short-term rates -- the so-called inverted yield curve.

But I don't think that's a satisfying model. It's like Newtons laws -- it's fine for ordinary times, but in more extreme situations it breaks down.

2. In general, the Fed cannot defeat the market. If the market wants rates to be 9%, and the Fed tries to hold them at 5%, the Fed will run out of money. This has happened many times in the currency context (which is closely related to interest rates). The Bank Of England kept trying to prop up the pound in the late 80s, and kept failing, and that's how George Soros made so much money (shorting the pound). The Asian financial crisis was set off (not caused by) Korea's attempt to protect its currency rate; it ran out of money and had to come to NY for a bailout.

3. So your last question is best answered in the affirmative.
 
So we enjoyed Good Friday, so named because Trump could not continue to tank the market ( stock market was closed ), but now it is Monday and the futures suggest today will bring more tanking ...
 
Dow down 580 points
S&P down 87 points
NASDAQ down 360 points

We need a Good Monday, Tuesday, Wednesday, and Thursday😡
 
PCOXX. No cost, no fees, totally liquid. You're welcome. GDX also not bad here, or RING if you want to take further advantage of Trump destroying the U.S. Dollar.

Only if already on sidelines, or just came into cash or in bonds bigly. Otherwise, don't try market timing.
 
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Even though I'm 60% in cash and 40% in stodgy widow and orphan stocks I'm being taken to the cleaners today:eek:

I have heard that investors were jumping out of office windows and committing suicide on Black Tuesday in 1929. I'm not ready to commit suicide yet , but I really really need HeelYeah to come here and reassure me all is well !
 
heading into the final hour today...

Dow down 1200
S&P down 167
NASDAQ down 550

I'm a bottom fisher so this market is looking super delicious today, but I have a feeling there is more carnage to come.

I just wish HeelYeah would come here and give me some advice whether to take the plunge or keep my powder dry:unsure:
 
So my granddaughter is going to be a freshman( freshperson ? )next year and has been looking at colleges with strong ice skating programs ( she is a competitive skater )

The top schools are private or public out of state universities. I have been investing in a 529 plan for her since the day she was born and was on track to cover 100% of the cost of a private college.

After looking at her ending balance yesterday, I called her and asked whether there was a community college nearby with a strong competitive ice skating team

Thanks Trump...oh wait, I mean thanks Biden :mad:
 
Tank the market and threaten to fire the Fed chair for being an independent watchdog. That's some brilliant economic maneuvering right there.
Stubborn and stupid is not a good combination for a leader.
 
Bottom feeders. This happens in volatile markets. It is actually not a good sign. When the actual bad data hits the fan, less dollars for bottom feeders to stop the bigger drops.
 
Kraftyheel89 said:
Bottom feeders. This happens in volatile markets. It is actually not a good sign. When the actual bad data hits the fan, less dollars for bottom feeders to stop the bigger drops.
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don't be dissin' me man

I have been a contrarian, bottom feeding value investor for decades

That said, I haven't cast my fishing pole into the pond just yet. I'm still waiting to get the signal from HeelYeah😜
 
mynameisbond said:
Tank the market and threaten to fire the Fed chair for being an independent watchdog. That's some brilliant economic maneuvering right there.
Stubborn and stupid is not a good combination for a leader.
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Thinks like the grifter he is. He wants those low iteration rates and low stock prices so he can buy the pump everything back up and make some money.
 
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