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Federal Reserve cuts benchmark rate by .5%

edited March 2020 in Fund Discussions
A dog chasing it's tail, IMHO. But, this will cause some short term investment thinking.

On the other hand, investment grade bonds should prove to have a decent week; barring a "whatever" moment.

Article, if you choose to know more

Have a good remainder.
Catch

Comments

  • Yup, agree. Last Friday was a good day to add to my bond holdings. I'll wait for the next bomb or two to hit the market before deploying cash to equities.
  • Greg Valliere, chief U.S. policy strategy of AGF Investments said:

    "The downside is that the "saver class," which consists mostly of senior citizens, "have been hit again" because of falling yields. However, Valliere expects a "tremendous amount of refinancing."

    Great! I am going to suggest to my 85-year-old father who lives on his Social Security check and small savings, to refinance his condominium for 30 years.

  • It's an intriguing reaction. The Fed cuts rates, which usually triggers a melt-up and gets a melt-down instead.

    Why? Online speculation is that the publicly available evidence (particularly sentiment indicators, which Powell implied was what drove the decision) all were positive. So why cut? The Fed knows something we don't.

    Something dark.

    Something awful.

    Something that triggers a massive emergency cut.

    What? No idea, but let's scream and run around first, think it through later.

    (sigh)
  • edited March 2020
    I have not posted this list in quite awhile; but today is worth a review for the 10 year yield for many countries for a comparative. This list does update through the trading day. Also, to the right side of the page are other data sets that may be of interest.

    10 year yields

    Is it nap time yet? I'm pooped. :)

    Take care,
    Catch
  • Yup, that rate cut worked out well didn't it? Next?
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