The Fed has already announced they will continue to raise interest rates to combat inflation but I’m curious to see what they will do with securities like stocks. If they will raise rates, stocks will fall, but if they don’t then they will have to continue to print and inflation will raise. No one likes high inflation during the Mid-term Elecitons, but on the flip side no one likes a stock market crash. Hmmm…
Not all stocks will fall in a rising rate environment (banks for one). The Fed has several levers to pull, but after waiting for years we’ll find out if any of their shiny new levers work (they may not, then we have a problem).
Winding-down the bond buying program won’t raise rates, but you may see some stocks fall when the support is removed. It doesn’t have an affect on the money supply.
i’m sure that will work out well for everyone involved…
No one will believe it but the drop in stocks will have huge ripple effects in the used and new car markets in the next 3 to 6 months out. The lower equity prices tank the quicker you will see used car prices plummet. Market readjustments ahead.
Interested in your train of thought and how you came with this conclusion… I would think supply and demand would dictate this and if stocks drop I do agree that car demand will drop a bit (as consumers become less confident about their financial situation), but I’ve never heard anyone make a car purchase based on the performance of their portfolio… I could see someone splurging a bit if their portfolio is doing well, but if you need a car (for your job or just to get around) you’ll still proceed with that purchase.
Well with millions amd millions of new traders or can i say “investors” into the market, none of them have ever witnessed such a sizeable correction in the markets, that in itself could push some would be buyers out of the markets. Not not only that but with a drop in equity prices most people who receive their quarterly statements might hold back on a brand new car purchase due to the fact their retirement portfolio just dropped $58,000 in a few months. And aside from that with asset bubbles everywhere about to collapse, well, that in itself will have consumers spending a bit differently in the not so far out future and buying a car, well that’s a heavy payment on a monthly budget, especially after inflation has skyrocketed new and used to car prices to levels never seen in history of mankind.
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Will destroy crypto as well. So equities and crypto tanking coupled with people who have to pay taxes soon and it’s going to get very very ugly. Chip shortage provides a floor though for how low prices will go, not like there will be thousands of unsold cars sitting in lots like prior years.
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so what does this do for wrangler and TRX values
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As a society are we yolo’ing and spending all our money or are we bracing for the collapse of the markets?
hopefully everyone here was short the ruble and the RSX and is cashing in w a few 911s at MSRP this morning?
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If I would have shorted the ruble, it would have tripled in value and Russia would have won the war in 30 minutes.
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username checks out.
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I don’t know, but they’re saying gas is going to be $5-$6 a gallon soon over the entire country .
I know it’s already $5 in CA LoL
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yeah…I paid $4.48 for 93 last night 
However, 87 was only $3.48.
If the pundits are correct, well see $6-7 in the foreseeable future…but for how long…who knows.
NY/NJ is about the same. 87 octane around $3.60ish
If they put severe sanctions on Russia (which they will), we’ll def see $6-$7 a gallon. They’re the #2 producer of oil in the world .
To what @NATO asked. I guess it won’t look good for huge V8 gas guzzlers.
time to invest in some barrels of gas, Should have filled up last night, gas went from 5.04 to 5.14 this morning. Oh wait, i drive a tesla.
I actually went to the pump at 11 pm last night to fill up my 4xe after Putin announced his military exercises. Looked at the pumps this morning and saved myself a cool 3 dollars.