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| WYDave - 12/22/2018 18:17
The market has a saying: "Don't fight the Fed." The Fed wants to be very "hawkish" about inflation, and the Fed's antique models say "we're worrying about inflation, so raise interest rates." The Fed is proving to be somewhat inflexible in the face of new developments in markets and economies that aren't part of their models for inflation, and so the Fed appears to be plodding ahead, mindless of what is happening in markets.
And, what is not talked about is how everyone has the self-preservation drive above all else. It's in every one of us. It's in our genes. The Fed knows it is going to get blamed for the pension mess, and that mess appears to be right around the corner now. And, by all accounts, it is going to be quite the mess. If anyone thinks there is division in this country now, wait until the pension fight really starts. The Fed will be rightfully blamed for it, IMHO. To at least partially deflect this, they know they must get back to a more "normal" interest rate - and soon. They see this recovery as a gift.
But, so far this correction is not a major one. I see the chart I posted below is difficult to read. I'll put in on Flickr here
https://www.flickr.com/photos/33568753@N08/31492872487/in/album-7215...
If anyone wants to look at it, hitting the magnify (+) on that page makes it readable. IMHO, to compare previous corrections in a chart like this, semilog scale needs to be used. That way previous corrections, on a percentage basis, can be directly compared to current corrections. | |
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Stock market?
