Why is this so important? When the Fed lowers interest rates, it
means that it will be cheaper for people to borrow money. After all,
many Americans love to borrow. When interest rates are lower, more
people can afford to buy a house. After they buy their house, they also
need furniture, housewares, and appliances. The more money consumers
and businesses spend, the better it is for the economy.
Therefore, when interest rates are lowered, the stock market often
goes up. Conversely, when interest rates are raised, the stock market
tends to go down.
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6 comments:
When the Feds cut interest rates, they are trying to stimulate the economy by of course encouraging borrowing.
But when the feds continuously cut the interest rates, it is a sign of a looming recession coming.
And this time, the stocks will fall due to changes in sentiments.
Interesting!
Exactly its sentiments and not fundamentals thats causing the potential recession.
But after all iv said, my take is: stay away from us/china/japan/korea/india...till i have better sentiments bout them.
The fundamentals are used as a basis for changes in sentiments.
Within turmoil, there is always financial gains to be made. It may not be balantly shouting pick me pick me. But there are still there. And that art will require Qiyang's divine intervention.
Btw, Alibaba dot com just IPO last wed.. I missed the boat...
You guys make playing with the stock market a literary art. Its just pure theory, luck and feel. So in a way, QY and Jason both have a point.
Seriously, sentiments or fundamentals, its all a bit of spice, fun and fizz. Be it as it may be, I do think there is a market for US stock. Spread bid might help. Or you could use a rising bid market spread. Whichever seems cool.
Drop drop drop. Then i buy buy buy
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