don't fight the fed

[unblock]

so the fed just raised rates 0.25%.
again.

one of the best bit of stock market timing advice i've ever heard was "don't fight the fed." specifically, markets historically suck within 6 months of the start of a rate hike cycle. and yet, this time the market keeps going up. or at least not down.

it seems that the stock market is defying one of the most reliable rules of market timing, don't buy when rates are going up.

why?


are people just rotating out of bonds and real estate and rotating into equities?

:shrug:

[Sammy Pepys]

1. Best market timing advice I ever heard:

"Don't"

[Warpy]

2. Yes, the housing market has at least stalled

so there's not much quick money to be made there, and the prospect for the long term is shaky.

The stock market is still providing the best chance for all that money floating around to increase, at least on paper.

People already in the market are starting to move more into bonds and other interest bearing vehicles. Short term bonds are especially attractive now due to the partial yield curve inversion.