Down today, up tomorrow, all part of a cycle. Only question is when will tomorrow come?
Ermergerd! The economy is doing moderately low. Unemployment claims came in below expectations. But the Fed might (read: might) raise rates one quarter of one per cent. That’s right. 0.25%!
Nothing happened. A petulant move by the market because of signals of a 25 basis pt move from the fed. S&P was down about 2.5%, there might be another 2.5% in this move. Which is exactly what the fed wants. After that happens, this could be last opportunity before some serious fiscal stimulation after inauguration, particularly if there is a significant change in control in congress.
Take a good look at CAT and others at really cheap prices that will benefit from infrastructure spending. Consumer facing sectors will be a lot slower to recover.
Was it stock prices or house prices you are waiting to drop? My guess is stock first then housing. Ah but which one to buy, if you buy stock, can you then buy houses? Maybe housing stock?
OT: Just paid off my last credit card (had 0% on it but just thought I’d do it so I could post this) also just doubled my 401k contribution, now 12%, so other than the mortgage I’m debt free!
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