Complacency in the markets and the possibility of markets rising when rates move up
Gary and I chat about the volatility index falling below 12 points today and what that means for future movements. We then move into the potential of the dollar reaching extreme levels and finish with the concept that market rise in times of rising interest rates.
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I can see your point that banks can pay more interest when they make more money.
I like bob Hoye’s comments on these kinds of issues. Basicllay I suppose the low rates come with deflation and the stock market also crashes, like in 2007-2009.
I agree with you originaljj and wonder if the dollar will go to 160 again, either on this bull run or on the next on in the later 2020s.
This article nails my feelings. Silver is a different story for me.
The two big moves the US$ index has produced to 164 and 121 has had a rising US equity market in the background just as Armstrong has explained many times, his most recent
Correlate the stock market to interest rates and you will see that there too, the pundits and theories are DEAD WRONG. Stocks historically RISE with RISING interest rates, and rates plummet with every decline like 1929–1932 or 2007–2009. You will see the U.S. share market RISE with RISING interest rates, compelling the central bank to continue raising rates as they are trapped within the corridors of this simply wrong thinking process.