US stock investors pee in their pants as 3rd rate hike approaches....
#1

Each rate hike leads the market to néw lows
Mainly because bond yield rise and stocks become less attractive.

The last rate hike many said "discounted " when the rate hike came investors cheong for 1 day only. Next 4 weeks lao sai.

You would think they learn the lesson already. Yet now we hear talk that rate hike Is "discounted" again. Keep repeating same mistakes.

In the past Fed hike rates because economy growing too fast. So rate hike is to slow things a little but company earnings still grow so stocks can move up.

Today's situation that rates are hiked to contain inflation only occurred in 1970s. Each rate hike sank the market. And brought down popular high flying STOCKS 

WE JUST NEED TO LOOK AT FACTS AND LEARN FROM HISTORY.

Smart investors already got-out of US markets end of last year.

Most who hang on stubbornly using recent 10yrs as reference are making a big mistake of short sightedness. Situation has changed.

I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
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#2

(14-06-2022, 06:01 PM)sgbuffett Wrote:  Each rate hike leads the market to néw lows
Mainly because bond yield rise and stocks become less attractive.

The last rate hike many said "discounted " when the rate hike came investors cheong for 1 day only. Next 4 weeks lao sai.

You would think they learn the lesson already. Yet now we hear talk that rate hike Is "discounted" again. Keep repeating same mistakes.

In the past Fed hike rates because economy growing too fast. So rate hike is to slow things a little but company earnings still grow so stocks can move up.

Today's situation that rates are hiked to contain inflation only occurred in 1970s. Each rate hike sank the market. And brought down popular high flying STOCKS 

WE JUST NEED TO LOOK AT FACTS AND LEARN FROM HISTORY.

Smart investors already got-out of US markets end of last year.

Most who hang on stubbornly using recent 10yrs as reference are making a big mistake of short sightedness. Situation has changed.

Not bond yield rise. It is bond yield inverted causing the drop. Big Grin

How do know $$$ flow out from bond market will go into stock market, I think you dont know how to see?

“Be who you are and say what you feel, because those who mind don't matter and those who matter don't mind"
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#3

Bond yield inversion.


[Image: 3320-A9-EA-6-E5-C-4-F39-AC37-849970788949.png]

“Be who you are and say what you feel, because those who mind don't matter and those who matter don't mind"
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#4

https://www.reuters.com/markets/us/us-yi...022-06-13/

“Be who you are and say what you feel, because those who mind don't matter and those who matter don't mind"
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#5

In smplicity, when a big shareholder like Fed reduces its share holding. Will you buy now?
No right! Definitely, you will wait for Fed to offload most of its selling, then you start to buy again.

Now the question is why Fed wants to offload its bond. To fight inflation? Probably. But it is too slow. Inflation monster is not easy to catch.

“Be who you are and say what you feel, because those who mind don't matter and those who matter don't mind"
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#6

(14-06-2022, 06:04 PM)RiseofAsia Wrote:  Not bond yield rise. It is bond yield inverted causing the drop. Big Grin

How do know $$$ flow out from bond market  will go into stock market, I think you dont know how to see?



The other way to look at it is investors want higher return from bonds and various investments...to get higher yields price has to go down.

It's simple maths.

I, being poor, have only my dreams; I have spread my dreams under your feet; Tread softly because you tread on my dreams.
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#7

intermission
[Image: Screenshot-from-2022-06-14-18-34-52.png]
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#8

VIX index can see?
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