Episode 52: The economy is at an inflection point whereby higher interest rates are justified…BUT the market has been so distorted by Federal Reserve intervention [and other central banks] that rational yields could be detrimental.
Without getting too deep in numbers or theory, we discuss the ramifications of higher interest rates in the wake of a rising dollar and lower energy costs.
Key takeaways: The distortions have created an Alice in Wonderland CONUNDRUM in which uncertainty has been vastly increased- don’t be deceived by the pundits, they have no idea what will happen. As an individual investor you must be watchful and diligent. Be aware that rising interest rates would decrease bond value. Keep an eye on interest rates and be very nimble in the stock market. The next six months have the potential to be a boom or bust for the economy.
They Federal Reserve may have lost their ability to control interest rates.
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