As an indexer, I shouldn't worry about any market event, right? The market always comes back after all. But, there have been a couple of ugly events for the last 92 years. On average there is one every 18 years or so. Although, past events can't be used to predict future events.
What Could Be Bad?
I would rather see the Fed raising rates. I know the stock pricing would be
negatively affected by rate hikes. But the implications of rate hikes are good
economic.
I think one tragic event is when the Fed has to keep the rate at 0% to 0.25%
for longer or, even worse, lowering rates into the negative territory, that no
one has ever witnessed in history.
What Can We Do?
Spend money, work hard.
The stock market is only healthy when the fundamentals are healthy. Economic
fundamentals' health follows the good-old fashion of supply and demand
rules.
"Supply" is the working hard portion, while "demand" is spending more portion.
When the Fed set the target federal funds rate to 0% - 0.25%, I am happy to
see companies start borrowing money to expand businesses and people buying
more stuff. This can push inflation up and makes the Fed consider raise the
rates.
Conclusion
The worst thing that could happen right now is that the Fed's 0 rate strategy
fails. WIll there be a recession? I don't know. But I know it's very bad.
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