Yes, Sept 2017:Extended to September 2017?
Holy crap! I just realized something.
W/S loves to handicap the future and it has been rising for a few reasons.....
1) Markets always go higher during election years, but we are at record highs, so maybe thats already priced in.
2) Anticipation of a Trump boost to the economy by loosening government regulation on the financial and other industries.
3) Adding $1T to the National Debt in new "stimulus spending" on "infrastructure".
As a result, the market expects and WANTS an interest rate increase, maybe as soon as December. The question is should it be .25% or .50%. My guess is .25%. And now for my hypothesis -
AFTER the rate decision is made, especially starting in January, if we continue to get strong economic data will the markets fall 10-15% like it did last January on fears that the Fed will have to raise rates in 1% increments, and where will it stop? Will too many increases put the brakes on earnings growth?
Usually W/S shoots first and ask questions later, so who knows what will happen. The selloff last January was a buying opportunity and any dip is bought these days, so who knows.
Well, the Nasdaq is down 2% intraday today. It's either profit taking (normal), or we or going to play the "lets worry about rates" game sooner rather than later.
QQQ $117.50, down $2.50 to $115.49, target $102????
Italy is preparing to take a 2 billion euros controlling stake in Monte dei Paschi di Siena (BMPS.MI) as the bank's hopes of a private funding rescue fade following Prime Minister Matteo Renzi's decision to quit, two sources close to the matter said on Tuesday.
Please someone convince me that we won't hit a local maximum tomorrow (Dow ~20,000 S&P ~2300) then fall once the fed increases rates. I'm too tempted to take profits now when I should just keep going with my normal buy and hold strategy.
Please someone convince me that we won't hit a local maximum tomorrow (Dow ~20,000 S&P ~2300) then fall once the fed increases rates. I'm too tempted to take profits now when I should just keep going with my normal buy and hold strategy.
Yes, but the question is, are oil companies worth buying and holding now? I have about 500 shares of OAS and would like to add or take profits.
So why stay in the market? We haven't hit irrational exuberance yet as the retail investor is still not committed to join the party. When your barber is giving you stock tips, that's when you know. Second savings accounts still pay a paltry yield compared to dividend stocks which pay much higher yields. Third, if we get a tax holiday as the Republicans say we might, blue chips will be buying back stock and paying higher dividends. Don't want to miss that.
I'd be moving stocks in my 401k into a stable value fund (currently paying ~2.1%). So it wouldn't be a taxable event.I am in the same boat as you. I desperately want to take profits as this has been too quick and too steady a climb, particularly in the banking sector, but I need to push some of my gains to next year or my tax bill may be higher than planned this year.
So why stay in the market? We haven't hit irrational exuberance yet as the retail investor is still not committed to join the party. When your barber is giving you stock tips, that's when you know. Second savings accounts still pay a paltry yield compared to dividend stocks which pay much higher yields. Third, if we get a tax holiday as the Republicans say we might, blue chips will be buying back stock and paying higher dividends. Don't want to miss that.
Exactly. They'd sell their stock, repay their loans to themselves, pay a token tax, then repurchase their stock. There wouldn't be much of a stock movement from a tax holiday.Concerning the "tax holiday," I've read some things about how the "cash" of companies may be invested in stocks and bonds already. To repatriate the money, they'd have to sell. Zero sum game? And most of the cash is held by a few dozen companies.
Exactly. They'd sell their stock, repay their loans to themselves, pay a token tax, then repurchase their stock. There wouldn't be much of a stock movement from a tax holiday.
The tax holiday is for overseas money. So if its in stocks or bonds its in foriegn stocks, so overseas markets would drop and US markets would rise correct?
Please someone convince me that we won't hit a local maximum tomorrow (Dow ~20,000 S&P ~2300) then fall once the fed increases rates. I'm too tempted to take profits now when I should just keep going with my normal buy and hold strategy.
I can't speak for every single company out there, but in general this is what happens:The tax holiday is for overseas money. So if its in stocks or bonds its in foriegn stocks, so overseas markets would drop and US markets would rise correct?
^You crazy, DOW to 30,000 and oil to $90!