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re: Am I the only one who thinks the market's reaction to the coronavirus outbreak is...

Posted on 2/1/20 at 10:20 am to
Posted by LSURussian
Member since Feb 2005
127204 posts
Posted on 2/1/20 at 10:20 am to
quote:

You keep making this about interest rates and it is about actions of the Fed.
Well, yeah. The Fed takes open market actions in order to influence overnight interest rates to meet their stated rate goal. The two are inseparable.

quote:

but generally when the Fed pulls back on repo positions the market reacts in a downturn
The Fed had almost ZERO repo operations from the end of the 2008/2009 financial crisis up until last Fall and the stock market went up considerably during those years.

Believe what you want.
Posted by BamaAlum02
Huntsville, AL
Member since Nov 2005
1016 posts
Posted on 2/1/20 at 10:58 am to
quote:

The Fed had almost ZERO repo operations from the end of the 2008/2009 financial crisis up until last Fall and the stock market went up considerably during those years.


But they were taking other action, yes? I've said all along this is about the Fed's actions. They have multiple tools at their disposal and we are just seeing repo action these last few weeks.

quote:

Believe what you want.


Agree. If you believe the Fed's only influence on the market is when they change rates, I don't think we will see eye to eye. We're obviously both successful in our investing despite believing and watching different indicators or else we wouldn't have so much free time to screw around on a message board.
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