Tag

Tag :

Fed raises rate as expected

Bob Sievers 0 comments 20.12.2015

Just a quick follow up after the fed raised 1/4% as I forecasted.  As I expected, the fed raised and publicly traded interest rate futures actually saw yields DROP.  After an initial relief rally from the stock market, the last few days have turned ugly.  This is NOT a reaction from the fed raise but a reaction to the current meltdown in energy prices.  This meltdown is precipitated by both OPEC overproduction as well as a world wide deflationary cycle.  Lower oil prices, once stabilized (We could see something as low as 25 per barrel) will be a big stimulus to our economy.  While oil sector companies cut dividends and face bankruptcy, the rest of the economy will find some tailwinds.  Barring a major worldwide stock market decline (which is a risk), we should see a steady economy and housing market in the coming year.  Happy holidays again!    Bob

Powered by DIGS