Seeking Alpha

At the close

  • Dow -0.71% to 16220. S&P -0.61% to 1860. Nasdaq -0.59% to 4307.
  • Treasurys: 30-year -0.85%. 10-yr -0.87%. 5-yr -0.69%.
  • Commodities: Crude +0.22% to $99.1. Gold -2.14% to $1329.9.
  • Currencies: Euro -0.74% vs. dollar. Yen +1.04%. Pound +0.35%.
Comments (9)
  • WisPokerGuy
    , contributor
    Comments (886) | Send Message
     
    "Stocks slide at the thought of rate hikes"?

     

    That is probably the single dumbest reason for stocks to go down I can think of. Rates are not going to stay at zero forever. Geezzz, even I know that. Plus, interest rates going back to somewhat of a normal level actually is good for the economy because it shows that economic strength is sustainable and not just propped by the Federal Reserve. People are like lemmings.

     

    Long the TBT
    19 Mar, 04:40 PM Reply Like
  • ROKSOLAD
    , contributor
    Comments (6) | Send Message
     
    You're a people too...right?
    19 Mar, 05:21 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3903) | Send Message
     
    rate hikes...2 years from now...so sell today before its too late!
    19 Mar, 05:46 PM Reply Like
  • mobyss
    , contributor
    Comments (2042) | Send Message
     
    She said probably 1 year from now.

     

    Anyway, isn't the market a "future economic/business conditions discounting mechanism"?

     

    The 35% markets rise in 2013 and 2014 has priced in a lot of VERY rosy news for the next few years, including the expectation that rates will not move until late 2015 or early 2016 at the earliest. Now, the end of the ZIRP party just got much closer.

     

    And usually once the Fed starts raising rates they move pretty fast and consistently - meaning we could be back to 4% by mid 2016.
    19 Mar, 06:24 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3903) | Send Message
     
    "...meaning we could be back to 4% by mid 2016"

     

    ahem...2 years from now.
    19 Mar, 06:42 PM Reply Like
  • mobyss
    , contributor
    Comments (2042) | Send Message
     
    "rate hikes...2 years from now...so sell today before its too late! "

     

    Early 2015 (Yellen's FIRST possible rate hike) is ONE year from now.

     

    After a series of rate hikes, it could be 4% by 2016, TWO years from now.
    20 Mar, 02:33 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3903) | Send Message
     
    Ok a year from now, so sell the same day she said it was "possible"? Ridiculous.
    20 Mar, 02:35 PM Reply Like
  • mobyss
    , contributor
    Comments (2042) | Send Message
     
    If you're looking for rational behaviour, the stock market should be last on your list.

     

    But the clear pattern for the last five years has been:

     

    "Fed printing money and using it to overpay for bond assets or lending it for almost free = stocks rally. Anything else = stocks fall".
    20 Mar, 04:16 PM Reply Like
  • COBeeMan
    , contributor
    Comments (1361) | Send Message
     
    Am I missing something? Didn't Ben also say ZIRP would continue at least through 2014 and maybe into 2015 if conditions merit? The only change is *when* in 2015.

     

    I don't remember the market panicking like this in the old days. What has changed to cause such tantrums? Maybe hedge funds doing large bond trades to move the market when everyone is on edge so they can reverse them a little later? Maybe High Frequency Trading programs? Whatever it is, it sucks and feels like manipulation.
    19 Mar, 07:22 PM Reply Like
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