What You Ought To Know About Upcoming Interest Rate Hikes

A fairly good overview of the market. Definately worth two minutes of your time. Jim Paulsen is right on the mark in terms of historic Fed interest rate increases and subsequent market action.

With that in mind, I will go out on a limb here and say that the Fed is too late to the party. Why? Today’s capital markets will react to the Fed’s proposed rate increases with a massive sell-off while interest rates remain below 1%. At least based on my timing and mathematical work.

This would be the worst possible outcome for the Fed as they won’t have any countermeasures in place to either backstop or alleviate any such financial or economic trouble. QE-4? Sure, but this time around the bond market might react in a negative fashion. Making matters even worse. That is to say, checkmate and game over for the Fed!!!

Z31

What You Ought To Know About Upcoming Interest Rate Hikes Google