Thread: Dow 20,000?
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Old 02-05-18, 09:33 PM
lotr10 lotr10 is offline
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Originally Posted by frecriss View Post
The markets are based on speculation.

When Trump was elected, the speculation was that taxes would be cut, jobs would created and wages would go up. All that happened which caused the stock market to surge.

The speculation now is that the Fed will raise interest rates to strengthen the dollar and ward off inflation. With that, investors are pulling out of stocks and investing in Bonds/Funds.
This sounds about right to me. My guess is some folks are spooked by the prediction of the Atlanta Fed office that first quarter GDP growth might be on the order of 5.7%! This kind of growth will always trigger inflation concerns. The good news is that interest rates are very low giving the Fed some wiggle room to raise rates, keeping inflation under control without doing to much damage.
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