Fed Impact on Market

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curi0usAndCuri0user
Posts: 21
Joined: Tue Aug 14, 2012 8:33 pm

Fed Impact on Market

Post by curi0usAndCuri0user » Wed Jun 12, 2019 1:01 am

It seems to me that the Fed is unwilling to let the market go anywhere but up. At any slight hint of a downturn (e.g., Mexico tariffs the other week), there is a willingness to lower rates to keep the market going up.

My question is, what incentive does the Fed really have to raise rates? The only one I can think of is that if the market is doing well, the Fed may raise rates slowly so they can replenish their ammo if you will for the next hint of a downturn.

And if the Fed is essentially insuring the stock market (seems like that's been the case since the 2008 crash), is the best strategy to go all-in on the market as well?

AlohaJoe
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Location: Saigon, Vietnam

Re: Fed Impact on Market

Post by AlohaJoe » Wed Jun 12, 2019 1:14 am

The "Greenspan put" has been a thing since 1987, not since 2008. Did it stop the crashes of 2000 or 2008? Did it stop the market going down 20% in 2011 or 2018? Did it stop the recession of 1990-1991?

jbranx
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Re: Fed Impact on Market

Post by jbranx » Wed Jun 12, 2019 1:52 am

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