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Federal intrest rate and stock market

Posted on 6/10/15 at 9:20 am
Posted by Northwestern tiger
Long Island NY
Member since Oct 2005
23485 posts
Posted on 6/10/15 at 9:20 am
Anyone else pulling most of their money from stocks before the fed rate hike?

I'm slowly reducing my securities and will be out before the rates goes up. I'll be sitting on the sideline for a while.
Posted by STLhog
Nashville, TN
Member since Jan 2015
17718 posts
Posted on 6/10/15 at 9:29 am to
I still have about 50 free trades in my brokerage account and want to go full cash.

I'm up on most of my stocks and my S&P ETF has been getting crushed. Pretty sure I'm going to pull out of it soon and see how things shake out.
Posted by DukeSilver
Member since Jan 2014
2722 posts
Posted on 6/10/15 at 9:30 am to
Are you retiring soon? Only reason I could imagine doing that.
Posted by STLhog
Nashville, TN
Member since Jan 2015
17718 posts
Posted on 6/10/15 at 9:31 am to
quote:

Are you retiring soon? Only reason I could imagine doing that.


Anything wrong with taking my gains and then buying back in when the market corrects?
Posted by Cold Cous Cous
Bucktown, La.
Member since Oct 2003
15046 posts
Posted on 6/10/15 at 9:47 am to
quote:

Anything wrong with taking my gains and then buying back in when the market corrects?

Nothing at all, but we had people on this board saying that 2 years ago. They are still waiting.
Posted by Cmlsu5618
Destin, FL
Member since Sep 2010
3763 posts
Posted on 6/10/15 at 9:47 am to
Wait. Which day did the news say this would happen?
This post was edited on 6/10/15 at 9:48 am
Posted by Shepherd88
Member since Dec 2013
4587 posts
Posted on 6/10/15 at 9:48 am to
**If it corrects**. Not to mention knowing the right entry point.. What if you miss the "correction" and the market goes up another 20% like the last 10 times?
Posted by STLhog
Nashville, TN
Member since Jan 2015
17718 posts
Posted on 6/10/15 at 9:49 am to
quote:

Wait. Which day did the news say this would happen?


Just look at all the charts.

If they raise rates, equities will fall. The S&Ps return this year has been dog shite.

You really think things are going to keep rising?

Every big company out there is laying a shite ton of people off too. No more uber cheap corporate debt.
Posted by STLhog
Nashville, TN
Member since Jan 2015
17718 posts
Posted on 6/10/15 at 9:51 am to
quote:

**If it corrects**. Not to mention knowing the right entry point.. What if you miss the "correction" and the market goes up another 20% like the last 10 times?



What if the earth blows up tomorrow?

Its about 50x more likely we're going flat to downward as opposed to further up. What out there is showing we have room to grow?

Tech across the board, except maybe apple is over valued, thats pretty much not debatable.
Posted by Shepherd88
Member since Dec 2013
4587 posts
Posted on 6/10/15 at 9:51 am to
Charts mean absolutely nothing. Fundamentals mean something and fundamentals look real good right now, but the market is an animal all in itself and has no pattern and makes no sense sometimes.

Posted by STLhog
Nashville, TN
Member since Jan 2015
17718 posts
Posted on 6/10/15 at 9:54 am to
quote:

Charts mean absolutely nothing. Fundamentals mean something and fundamentals look real good right now, but the market is an animal all in itself and has no pattern and makes no sense sometimes.


What fundamentals? Record debt/earnings? Shaky jobs data?

I'm not trying to be all zero hedge on you, just wondering what you think is actually strong?

Everyone always says there isn't a bubble when there is one..
Posted by Shepherd88
Member since Dec 2013
4587 posts
Posted on 6/10/15 at 10:01 am to
Companies have double the cash on hand than they did in 2007 and 60% of the debt. P/E's are at a fair maket value but taking into account the cash on hand there is still room to grow. Not to mention that valuation still don't prove anything, just look how the oil market held over valuations for several years before it correct
Posted by iAmBatman
The Batcave
Member since Mar 2011
12382 posts
Posted on 6/10/15 at 10:36 am to
It's hilarious when people try to time the market
Posted by Big Scrub TX
Member since Dec 2013
33429 posts
Posted on 6/10/15 at 10:42 am to
quote:

Every big company out there is laying a shite ton of people off too.


Link?

quote:

No more uber cheap corporate debt.


Link?
Posted by Jag_Warrior
Virginia
Member since May 2015
4106 posts
Posted on 6/10/15 at 11:12 am to
quote:

Anyone else pulling most of their money from stocks before the fed rate hike? I'm slowly reducing my securities and will be out before the rates goes up. I'll be sitting on the sideline for a while.


No, but I have rebalanced my investment portfolio (I'm still trading the same wet dogs in another account though). I dumped the remainder of my airline shares over a month ago, lightened up on tech and moved more into financials. That's worked out very well, so far.

KEY has gobbled up Jimmy Yellen's rate hike threats like a fat kid gobbles up ice cream on a hot day - I believe it's up over 10% in the few months that I've had it. I don't own it, but even beleaguered BAC has had a nice run. Those companies whose profits are helped my rising rates like rising rates. I like regionals over money centers though.

In my 401k accounts, which consist mostly of mutual funds, I don't attempt major rebalancing unless I see something major on the horizon. Over time, in more conservative accounts, dollar cost averaging will generally be your friend. But I don't think I'd be trying to dollar cost average my way into REITs or bond funds right now though.
This post was edited on 6/10/15 at 11:13 am
Posted by Cmlsu5618
Destin, FL
Member since Sep 2010
3763 posts
Posted on 6/10/15 at 12:00 pm to
quote:

Every big company out there is laying a shite ton of people off too.


You in O&G?

There are more job wanted postings right now than ever before in the US.
Posted by Jag_Warrior
Virginia
Member since May 2015
4106 posts
Posted on 6/10/15 at 12:06 pm to
quote:

Every big company out there is laying a shite ton of people off too.


If true, then the chances of a Fed rate hike would be much less. You have a divergence there.
Posted by bayoudude
Member since Dec 2007
24958 posts
Posted on 6/10/15 at 2:29 pm to
I might be in the minority but i hope rates do go up somewhat. My cash in the bank isn't doing squat and CD rates are pitiful.
Posted by opiet
MS
Member since Dec 2014
4 posts
Posted on 6/10/15 at 3:10 pm to
Please raise interest rates! This country needs to have consequences for a person incurring debt.
Posted by Golfer
Member since Nov 2005
75052 posts
Posted on 6/10/15 at 3:22 pm to
quote:

Please raise interest rates! This country needs to have consequences for a person incurring debt.


LOL
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