What effect will a Federal Reserve interest rate hike have on the prices of PM's and stocks?
PerryHall
Posts: 46,146 ✭✭✭✭✭
If the Federal Reserve raises interest rates next month, how will that impact the price of PM's and stocks? All opinions are welcomed so get out your crystal ball and make your predictions.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
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The market has already increased rates. The FED is merely following along.
Knowledge is the enemy of fear
Since Trump won the election the stock market has done well and the PM markets not so well. Are you saying the stock market likes higher interest rates and the PM markets don't?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
It seems that way.
Yup. And it all makes perfect sense.
Knowledge is the enemy of fear
History shows that gold prices fall leading into a rate hike and generally rise, though sometimes with a lag
And if they don't raise the fed fund rate Dec. 16?
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
For now, I'm building cash to be ready to place the contrarian bet on a rise in rates.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
@derryb.....
You are probably correct since I am relatively sure that the Fed will raise rates in December....and you KNOW my record on predictions... 
Cheers, RickO
I doubt any rates will rise enough to reward savers and create a long lasting money destination.
Initially there could, should, would be a reaction, but to get rates to where they could counter any inflation (which should come back IF there's a genuine turn in prosperity) would also bleed the treasury and show our REAL debt morass to the world.
I think the move is priced in also
No correlation
$11 Billion bet placed that Yellen will reignite expectations for a faster pace of interest-rate increases when she speaks tomorrow in Jackson Hole.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
A bet on what someone will say? Regardless of the rhetoric there will be sub-2% interest rates for the foreseeable future.