What effect will a Federal Reserve interest rate hike have on the prices of PM's and stocks?

PerryHall

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.

cohodk

The market has already increased rates. The FED is merely following along.

PerryHall

@cohodk said:
The market has already increased rates. The FED is merely following along.

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?

OPA

@PerryHall said:

@cohodk said:
The market has already increased rates. The FED is merely following along.

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?

It seems that way.

cohodk

@PerryHall said:

@cohodk said:
The market has already increased rates. The FED is merely following along.

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?

Yup. And it all makes perfect sense.

derryb

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?

derryb

For now, I'm building cash to be ready to place the contrarian bet on a rise in rates.

ricko

@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

topstuf

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.

MsMorrisine

I think the move is priced in also

TwoSides2aCoin

No correlation

derryb

$11 Billion bet placed that Yellen will reignite expectations for a faster pace of interest-rate increases when she speaks tomorrow in Jackson Hole.

VanHalen

@derryb said:
$11 Billion bet placed that Yellen will reignite expectations for a faster pace of interest-rate increases when she speaks tomorrow in Jackson Hole.

A bet on what someone will say? Regardless of the rhetoric there will be sub-2% interest rates for the foreseeable future.