Loading ...FED policy going forward
Interesting times ahead for Fed watchers.
Some speculate general equity crash is due as the Fed will start reducing its balance sheet from next quarters:
http://www.graceland-updates.com/images/stories/17oct/2017oct3debt1.png
I believe in that scenario interest rates will go up and gold will not rally that much.
On the other hand in the next scenario Jim Rickards believes, Fed will stop tightening, and will maybe ease again
https://dailyreckoning.com/watch-feds-new-guard-not-old/
In that scenario gold can only rally and equities should do well too
Rate Hikes Are not necessarily bad for gold Alex. Quite possibly the opposite. There are other factors to consider as well
I fully agree, as from 2001-2008 rate hikes were positive for gold. Maybe both scenarios are positive for gold
I hear you, I’m just not sure the Fed will allow the market to crash. But i agree it will definitely put a weight on the market and we wont be seeing 11% annual returns on the s&p anymore. Maybe (-4%) to +4%.
are they not unloading the mortgages that they bought up on the cheap and now selling at the high in real estate? Dump them back onto the market and crash the housing bubble. They are and will continue to support the stock market and do not obviously care about housing and interest rates people pay and should continue to sneak them up. Rates=risk and perhaps outside forces will also raise rates regardless of fed wishes. Just my 2 cents.
Rate hikes are “good for gold” when the Fed is BEHIND THE CURVE ..
ie, raising rates too slowly, allowing real rates to fall.
(That could happen if the CRB bull really gets underway, as in the 70s)
Leisman today citing Admin sources said Kashkari is off the list. He was the biggest dove name being tossed around.
Kashkari Fed Chair Odds Soar After Gundlach Forecast, Crash After Liesman Denial https://t.co/OIDQNLPwTi