_TH3BAND1T_ t1_iuf6sfx wrote on October 30, 2022 at 9:29 PM

Terminal is priced in at 4% rn but it'll be 6%+ imo. I dont see rates slowing for a bit.

Its all a matter of opinion, but core inflation is terrible and must be stopped in order to save retirement for millions of people.

edvardmunch102 t1_iuft8ag wrote on October 31, 2022 at 12:11 AM

The red rate must be higher than inflation, it’s just that simple. So, I agree, at least six but I think less than 8.

Ascension100 t1_iuge456 wrote on October 31, 2022 at 2:55 AM

So rate hike to stop a recession. Rate hikes are what is causing the market to lower in the first place. The only reason its happening is to stop inflation from getting out of control in the hopes of orchestrating a stock crash to crash commodities, but commodities are increasingly getting harder to manipulate as other factors are impacting their prices more. Not to mention the suadis and opec are tired of the feds manipulation and are willing to cut oil production faster than the feds are willing to increase rates.

Rate hikes will of course cause a descent stock market correction, but allow for future growth when things settle, but the problem is that the market will want 0% again and won't tolerate "higher " rates like 2% and have a decent booming stock market.

_TH3BAND1T_ t1_iuicgpv wrote on October 31, 2022 at 3:37 PM

Well, let's be real the market will tolerate whatever it's given. But, yes close to 0% rates are optimal for fastest growth of economy. It should be remembered though that with 0% interest rates comes gross company valuations and wealth gaps. Along with it comes a more volatile market environment in general due to unnecessary risks of businesses.

Personally, I think that rates should be atleast the inflation rate. This means that 2% would be the bottom of rates. The 0% rates screwed us if you look at the economic reaction from a small virus.