Kerrisdale
2022-03-20
@MillionaireTiger
What do These Rate Hikes Mean for You?

Let me ask : When is the last recession recorded in the market history?
Remembered the 2008 recession, which lasted from end of 2007 to mid of 2009.Remembered the infamous collapse of brokerage firm Lehman Brothers, involving $619 billion of debts sometime in September 2008. Sounds familiar?
FED opted to drop the interest rate, lowering its benchmark interest rate almost to zero in its attempt to fight the recession by pumping large funds to aid businesses.
Interestingly, current era of interest rate pattern is like a mirror to the 2008 recession period, whereby FED has commenced to increase interest rate from virtual zero (Disclaimer: This does not imply or construe recession or any economic prediction).
Another major consideration factor happening currently is the sky-rocketing oil price. The rising cost of oil has caused consumer spending to be increased too. Looking at the CPI of US, it has increased to 284.18 points in Feb 2022, up 7.9% year-on-year, and the up trend is is steep.
Seriously, this compels me to look hard at my investment scope in coming weeks and months. Hope all will turn out well in many ways and for all Tigers here.

Sources:
https://tradingeconomics.com/united-states/consumer-price-index-cpi
https://www.history.com/topics/21st-century/great-recession-timeline
Macro Trend
Monetary policy, various types of price indices... Here is everything about the macro economy!
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Comments

  • RoaringTiger
    2022-03-22
    RoaringTiger
    Rate hike is a tool meant to control inflation and bring stability to the economy, but the current situation is far too complex to see if it's effective.
  • Ken7979
    2022-03-22
    Ken7979
    inflation is real. so is the oil price increase. everything is going up. rates hike is probably a blessing in disguise.
  • whitewolf69
    2022-03-22
    whitewolf69
    likely more downside in the market eventually because has been over extended NF is a good chance recession will be coming
  • gongfucat
    2022-03-22
    gongfucat
    reduce leveraged debt. esp property loans above the risk free %. this will ensure survival at least.
  • Asphen
    2022-03-22
    Asphen
    rate hikes are not the key concern, actually in some ways, it is good for the market and is sort of priced in already. what is not and is a major headwind upcoming is QT.
  • 多鱼先生
    2022-03-22
    多鱼先生
    Fed 会加大力度是肯定的，总是慢一拍。
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