Will the Fed’s Higher Rates Destroy ‘ZIRP Age’ Investments?

Jon Alternative Media, Banking, Economy, Fiscal Policies, Government, Market Commentary

Faded, Tired, and Shredded POITOU – It doesn’t look as though investors will get much Christmas cheer in their stockings this year. Last Wednesday, the Fed raised interest rates – as expected – by a token amount…
At first, there was a little rally in stocks. But in the two trading days thereafter, the Dow lost 621 points. Trading will be thin this week, as the big day approaches and more and more people turn from Mr. Scrooge investors into Mr. Fezziwig revelers.
But on Monday morning, the Japanese stock market sold off – a bad start to what could be a bad day… a bad week… and a bad year.
Investors looking at what happened on Thursday and Friday might think they see a trend. They might decide to spend the holidays ‘safe and sound’ – on the sidelines. Falling prices might create a panic… who knows?
We would run our ‘Crash Alert’ flag up the pole. But the old flag is in tatters. We felt sorry for it and put it into retirement. Each time we thought a panic might occur, we hauled it out and sent it up.

This post was published at Acting-Man on December 22, 2015.