Working from home. Missing my free coffee!
- Jan 3, 2003
- Reaction score
- Laveen, AZ
It's a mindset. People don't cash in on their gains. However, they feel richer looking at their gains, so they spend. Totally in agreement.This is a very key point that not many are paying close enough attention to IMO. The fed wants to crush inflation by crushing demand. The stock, bond, and property markets are big drivers of inflation in a consumer based economy. Hence, IMO, the fed is basically saying the markets need to pull back...maybe significantly...until they pause and/or cut rates. This will effectively crush demand and inflation.
Don't fight the fed.