Three questions:
1. Can the U.S. economy survive more than three interest-rate hikes?
2. Can the stock market survive more than interest-rate hikes?
3. Will the increased rates kill the housing boom?
Right now the market is saying no based sentiment of traders on StockTwits (currently shows a -2.26% sentiment) and other financial sites. As for the economy, I think it trails the stock market. House prices have to fall with rising interest rates because people will afford less.
For the last couple of years, the Fed has propped up the economy, I suspect they will be very conservative on their interest rate hikes as to not cause an economic crash or stagflation. If I were a betting man (and I am not) I would be buying calls today given the recent history of equities to jump up after the news.
1. Can the U.S. economy survive more than three interest-rate hikes?
2. Can the stock market survive more than interest-rate hikes?
3. Will the increased rates kill the housing boom?
Right now the market is saying no based sentiment of traders on StockTwits (currently shows a -2.26% sentiment) and other financial sites. As for the economy, I think it trails the stock market. House prices have to fall with rising interest rates because people will afford less.
For the last couple of years, the Fed has propped up the economy, I suspect they will be very conservative on their interest rate hikes as to not cause an economic crash or stagflation. If I were a betting man (and I am not) I would be buying calls today given the recent history of equities to jump up after the news.
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Follow us at alphabetastock.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.