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IronLionZion

(45,411 posts)

10. Treasury has to sell more bonds to pay for it

Reply to Exotica (Reply #9)

Thu Mar 29, 2018, 05:56 PM

Mar 2018

which raises interest rates on bonds. The Fed is also selling bonds to roll back their stimulus. As rates go higher, there will be some selling equities and buying bonds, especially for retirement funds and many balanced mutual funds.

I'm not talking about a 1 day drop in the DOW. I'm thinking of a multi-year situation of low or no growth in equities, and plenty of volatility ahead.

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11 replies

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Highlight:

Fed mistakes could spark 'unusually fast' bear market, 'lost decade' for stocks [View all] yallerdawg Mar 2018 OP

At the moment, PoindexterOglethorpe Mar 2018 #1

Wild fluctuations are consistent with... yallerdawg Mar 2018 #2

Also keep in mind that this market has climbed steadily PoindexterOglethorpe Mar 2018 #3

I was mistaken. It's going so fast! yallerdawg Mar 2018 #4

From what I've read here on DU, PoindexterOglethorpe Mar 2018 #5

The market was riding high until the tax cuts IronLionZion Mar 2018 #6

Uhhhh, he's already announced tariffs. PoindexterOglethorpe Mar 2018 #8

The tax cut bill had little to do with it Exotica Mar 2018 #9

Treasury has to sell more bonds to pay for it IronLionZion Mar 2018 #10

I agree if you lengthen the event horizon, yes, it will, of course have some effect Exotica Mar 2018 #11

I'll take my chances Awsi Dooger Mar 2018 #7