The Dow finished up 1,294 points yesterday, making it its best one-day point gain on record.
Fed cuts half point in emergency move amid spreading virus
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Re: Fed cuts half point in emergency move amid spreading virus
#12We are burning all of our fuel to ensure we are running at record levels and when a real problem rears its head, we are going to be dry.
Re: Fed cuts half point in emergency move amid spreading virus
#133-2-1, bull market returns. (I hope)
Why? Are you retired? Because if you aren't, if you're working and putting money into a retirement plan, you are much better off with a bear market, especially one like this that is practically guaranteed not to run for years. When you're a buyer you want prices to be low.
Not all people buy stocks just for retirement.
Re: Fed cuts half point in emergency move amid spreading virus
#14>The Fed also said in the statement that the “fundamentals of the U.S. economy remain strong.” So why cut the rate? Doesn't make any sense.
Because you can have a fundamentally strong economy, but nonetheless having up to 1/5th of you workforce off simultaneously (UK govt worse case) could cause business difficulties?)
Re: Fed cuts half point in emergency move amid spreading virus
#15Keeping the party going by drinking rubbing alcohol.
What would be hilarious/terrible is if this attempt to juice the markets doesn't prevent a sea of red at EOD.
Re: Fed cuts half point in emergency move amid spreading virus
#16The Dow finished up 1,294 points yesterday, making it its best one-day point gain on record.
It's best to follow the SP500 rather than the Dow. The former is much more representative of the whole market. And it's best to follow market movement in percentage rather than points. Points inflate over time as the nominal value of the market indexes climb.
Re: Fed cuts half point in emergency move amid spreading virus
#17We're basically running out of tools to combat an actual financial crisis. https://www.investopedia.com/terms/l/liquiditytrap.asp
It can go negative, or Fed can do another round of QE, there are plenty of tools. The real question is whether the deficit can grow indefinitely without consequences, and if this is a moral hazard (e.g. no risk priced in borrowing).
Re: Fed cuts half point in emergency move amid spreading virus
#18>The Fed also said in the statement that the “fundamentals of the U.S. economy remain strong.” So why cut the rate? Doesn't make any sense.
Why does it not make sense? Interest rates are incentives. You want a balance between too hot (inflation) and too cool (deflation). Ideally with low single digit inflation to encourage investment rather than pure savings.
Re: Fed cuts half point in emergency move amid spreading virus
#19This will further increase housing prices, no? How much more unobtainable for the average American could they possibly get?
I suppose negative interest rates will let us know shortly!
Re: Fed cuts half point in emergency move amid spreading virus
#20>The Fed also said in the statement that the “fundamentals of the U.S. economy remain strong.” So why cut the rate? Doesn't make any sense.
Because someone at the top with a limited grasp of economics but a great understanding of campaigning insisted on it.