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  • Fed’s Mester: It Will Take Longer to Gain Confidence Inflation’s Moving Toward 2%

Added at 12:01pm

Added at 12:01pm

  • #1
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  • May 16, 2024 12:23pm May 16, 2024 12:23pm
Quoting Vancarbon
Reduce the liquidity in the system , increase QT . Stop supporting a bloated stock market and stay out of political decisions when considering policy .
Interest rates when up up up and the market still went up up up. Why?

Lots of reasons but one thing that is different from the past is that now there is 6 trillion dollars in cash on the sidelines ready to buy up long term assets.

People have gained access to extra leverage their retirement plans and rising house prices.

In addition, the investors who enjoyed a long bull run could also get 4-5% risk free securities.

The reality is a lot of people have made a lot of money since the last recession and it's not just the rich who have grown their net worth.
Pride always comes before destruction.... -Proverbs 16:18
  • #2
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  • May 16, 2024 1:56pm May 16, 2024 1:56pm
Quoting Vancarbon
If MMT is so plausible why don’t they simply print , oh I don’t know , an arbitrary figure like 60 trillion, we can then spend and fund all those infrastructure projects. Simply keep deferring the interest payments and everyone is a billionaire. Imagine the level of the market then !!!!! If only, eh ! The fact that money printing out of thin air carries consequences , not just to the US but globally. The game has been debasing sovereign currencies since this failed policy. In honesty, it’s a frickin joke and simply a can kicking...
All good points but I'm American and don't think markets can only go one way. My brother is a financial advisor with a 250million AUM and also doesn't think this way.

I invest in companies that among other things have reasonable PE's with solid cash to debt ratios.

Overall, diversification is the flavor of the day. Invest in a strategy that wins no matter what the FED/government is doing.

Of course the average American is a dolt and just follows what some other dimwit tells them.
Pride always comes before destruction.... -Proverbs 16:18
  • #3
  • Quote
  • May 16, 2024 2:06pm May 16, 2024 2:06pm
Quoting Vancarbon
{quote} That’s good to know Expo . I was liaising with a fund manager today with 18 billion aum and he was perplexed at the Euro indices , saying the fund he manages hasn’t invested at these levels. Diversification is key and timing
Meant to say 250million AUM. Not bad for being in a rural state like Maine
Pride always comes before destruction.... -Proverbs 16:18
  • #4
  • Quote
  • May 17, 2024 1:43am May 17, 2024 1:43am
It's all sort of MMT ever since the gold standard has been abolished. OK, everybody feels that's kind of cheating. But what's the alternative ? A 1930-Great-Depression at every 10 years ??
After all, only the savings slim down in time. That's why we trade and invest. To be protected from ...printing effects.
If you're successful it doesn't matter where the bubble goes, if it keep swelling up or brusting
If you are too worried about the world balance, you are either a hardened Bolshevik or a loser in trading
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