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Mootsman
South Carolina Fan
Charlotte, NC
Member since Oct 2012
5634 posts

Rate Hikes

My brother has been listening to Peter Schiff podcast and is convinced that once the first ~50bp rate hike by the fed occurs in April that the entire balloon of the stock market will be popped. I have tried to convinced him otherwise and feel that reaching 2% rate by YE23 is gradual enough that most companies liquidity will not be affected and while it will slow the market to single digit growth over the next 12 months nothing will be "popped". However, if the fed decides to raise rates to a level that could actually be effective against inflation than that is a different story.

Any thoughts? Is everyone liquidating their portfolio at the first rate hike following Peter Schiff's advice?


CollegeFBRules
LSU Fan
Member since Oct 2008
23507 posts
 Online 

re: Rate Hikes
quote:

Is everyone liquidating their portfolio


This isn’t how true long term investing works.


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111
UpstairsComputer
LSU Fan
Prairieville
Member since Jan 2017
1052 posts

re: Rate Hikes
Peter Schiff is an extremely smart dude who has predicted 7,312 out of the last 2 crashes. No harm in taking some risk off the table within 3% of all time highs though...

This is going to get hairy before it gets fixed. Anyone that says they know what's going to happen tomorrow in the market is predicting and that's a fool's game.


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120
KillTheGophers
Yale Fan
Member since Jan 2016
5230 posts

re: Rate Hikes
Simply hedge with a rate product. Pretty easy and some of the hedge products compound very rapidly if the rate train starts aggressively rolling.


Mootsman
South Carolina Fan
Charlotte, NC
Member since Oct 2012
5634 posts

re: Rate Hikes
I have been looking at industrials ETFs to try and hedge against rate hikes. Evidently they hold value during increased rate environments.


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