The 50 basis point hike was expected. It was the forward guidance people were looking for where another 75 basis point hike is still possible.A 0.5% hike caused that.
Where are you getting an additional 3% from? The target rate is now 4.25% to 4.5%. The average of fed estimates was that the target rate would top at 5.1%. That isn't a 3% increase.An additional 3% for 2023.
Where are you getting an additional 3% from?
He's good at dodging that dreaded R word.A reporter suggested it and Powell did not rule it out. The only thing that could stop it is a drastic slowdown.
The highest that any fed meeting participant predicted was 5.6% (a 1.1% increase from now). See the range of estimates from 4.9% to 5.6% for 2023 on table 1, page 2 here: https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20221214.pdfA reporter suggested it and Powell did not rule it out. The only thing that could stop it is a drastic slowdown.
They are talking about trying to slow down wage inflation but for now they are in catchup mode, so the only way to do both are massive layoffs.
He's good at dodging that dreaded R word.
Psst: don't do early CD withdrawals. Borrow money using the CD as collateral.I had a 1 year bank CD from an S&L in 1990 paying 11.25%. Substantial penalty for early withdrawal. 😳
The highest that any fed meeting participant predicted was 5.6% (a 1.1% increase from now). See the range of estimates from 4.9% to 5.6% for 2023 on table 1, page 2 here: https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20221214.pdf
Certainly. No one, not me and not the fed can predict the future. But, to post a 3% increase from now with 10% mortgages is going too far without at least strongly emphasizing that is the worst case that you could imagine rather than any likely reality.Then perhaps I misunderstood. But you know estimates can be revised upward, correct?
I don't personally know anyone that invests in CDs anymore. May as well just hold the money in a money market account.Psst: don't do early CD withdrawals. Borrow money using the CD as collateral.
CDs in a time of low interest rates or rising interest rates are not a great idea. But, I use both money market accounts and CDs as needed. Mostly for my wife, she loves to hoard emergency money in the bank rather than invest it all. 1-year CD rates are now roughly 0.5% to 1.5% more than most money market accounts. Unless the fed really ramps up rates from now on, that premium is temping enough for me to consider them again.I don't personally know anyone that invests in CDs anymore. May as well just hold the money in a money market account.
Savings account rates were approaching 5% and now may exceed that.
We have a sizeable amount in an online account -- pulling in several hundred a month in interest.
I don't personally know anyone that invests in CDs anymore. May as well just hold the money in a money market account.
Tesla shares has been falling at a rate of about $50/share/month recently. Suppose that continues for about another month. Would $100/share TSLA be worthy of getting in? The P/E ratio would still be high, but not too unreasonable at 30. The CEO still would have a massive need to unload shares though. This is all hypothetical because there will likely be a lot of resistance at $130/share. But, I'm just trying to figure out where it is even worthy of starting to consider buying.
Don't use the capital one money market. Transfer the money to their performance saving account, which is at 3.3%.I have a capitalone account and their money market is 1%, while the 1 year CD is 4%. That 3% difference is worth buying the CD.
No shame in buying this dip. I personally will wait for the dust to settle rather than trying to catch a falling knife. While I think stocks still are 8% to 10% overvalued, there is so much money floating around out there that has to be invested somewhere. Fighting against that is a losing battle. I'll probably put in a small amount of money if the S&P settles around 3800.Buy the dip?
Don't use the capital one money market. Transfer the money to their performance saving account, which is at 3.3%.
They deprecated the MM account about 2 years ago and didn't really tell people that they should have switched to the performance savings.