Woe, Deceit, and Conceit The Dow fell 254 points on Thursday… or 1.4%. Investors were reportedly out of sorts about lower commodity prices and the threat of higher rates from the Fed. The first concern is real; as for the second… investors need not bother.
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If the Fed raises the short-term interest rates next month, it will do so only as a token. And it will continue doing so only as long as it has no negative effect on asset prices. Higher rates, in other words, will only happen as long as – and only insofar as – they are irrelevant.
This post was published at Acting-Man on November 16, 2015.
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