6 more rate hikes ahead, they will be lucky to squeeze in 3!

S2007S · Mar 17, 2022

This article claims 6 more rate hikes.....some say even more rate hikes in 2022 but reality is the fed lost every bit of opportunity to have rates where they were supposed to be,....now they are tad bit too late. They claim inflation is transitory but it doesn't make any difference, the amount of inflation we have seen and going to see in the next 2 years should have been spread out over many many years, so even though they claim it to be transitory it's too late now, prices have already surged more than most would have expected to. Doing a .25 hike now will do absolutely NOTHING to curb inflation.
They are predicting 6 hikes, all probably going to be .25 % because anything more and wallstreet will complain. Doesn't matter how many times they raise, they fell behind the curve and that's that. Inflation is here to stay and everyone now is paying more than 25% or more for goods and service.....Thank you fed and friends for making this happen!!!

https://www.cnbc.com/2022/03/16/new...tions-show-six-more-rate-hikes-this-year.html

sebking1986 · Mar 17, 2022

I feel like the recent hike is a fart in a hurricane. It's too little too late and inflation will continue to be an issue for a good while yet.

nooby_mcnoob · Mar 17, 2022

sebking1986 said:
I feel like the recent hike is a fart in a hurricane. It's too little too late and inflation will continue to be an issue for a good while yet.

Two types of inflation: inflation that is good for stocks, and inflation that is bad for stocks.

murray t turtle · Mar 17, 2022

nooby_mcnoob said:
Two types of inflation: inflation that is good for stocks, and inflation that is bad for stocks.

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Exactly\ i saw a video of Mr Ray Dallio/Bridgewater , note inflation buys include stocks commodities +gold. Never met him but good read in his Jack Schager top trader /hedge fund book............................................................................................................................
I lost money on gold.... but made money on DGP[ i remember that name , but seldom trade it derivative gold product.
DGP still looks good if one doesnt mind a big topping tail uptrend on monthly charts+ many do not mind that

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Good to see gasoline coming down i made sure not to buy as much\ use use as much when it was too high to buy. I NEVER bought auto gas hoggs except when VERY young/LOL

jeb9999 · Mar 17, 2022

The Fed is so far behind the curve on inflation that it doesn't even qualify as a sad sick joke.

No one in government today has the backbone and courage that Paul Volcker and Ronald Reagan had in defeating inflation in the early 1980s.

That winning battle against inflation set up the economic expansions of the 1980s and 1990s.

bennyg · Mar 19, 2022

I think the market is overestimating a soft landing by the fed

Nine_Ender · Mar 19, 2022

bennyg said:
I think the market is overestimating a soft landing by the fed

I think many traders are underestimating the strength of the economic recovery and what may occur when certain dynamics kick in later this year. Take a look at what occurred in 2016 and how traders on here forecast markets that year. If we close the year higher then now, please remember all the technical signs and earnings streams so far support that result.

Nine_Ender · Mar 19, 2022

jeb9999 said:
The Fed is so far behind the curve on inflation that it doesn't even qualify as a sad sick joke.

No one in government today has the backbone and courage that Paul Volcker and Ronald Reagan had in defeating inflation in the early 1980s.

That winning battle against inflation set up the economic expansions of the 1980s and 1990s.

So if we defeat inflation in the next year or two, you'll admit you were wrong right ? You won't dispute the numbers or make excuses like some on here do.

NoahA · Mar 19, 2022

Nine_Ender said:
I think many traders are underestimating the strength of the economic recovery and what may occur when certain dynamics kick in later this year. Take a look at what occurred in 2016 and how traders on here forecast markets that year. If we close the year higher then now, please remember all the technical signs and earnings streams so far support that result.

I think a major issue is rising rates from essentially zero % in a highly inflationary environment. From what I read, these are conditions that have never happened before so we can't really guess as to what will happen. The housing has also never been so extended as now, and if we quote 2007, then its not comparable since rates were much higher.

I think we are therefore in uncharted territory. The charts don't lie, and the past week has been very bullish, but the market can also be very bullish while structural problems persist. Venezuelan markets went crazy high as the currency devalued. So a rising market can also be a very bad thing.