Stock market tips and experiences

[DrVenture]

This seems to be a good time to summarize the FEDs function. "The Fed's modern statutory mandate, as described in the 1977 amendment to the Federal Reserve Act, is to promote maximum employment and stable prices. These goals are commonly referred to as the dual mandate."

They are not tasked with helping people with poor financial literacy to make better decisions. They are not tasked with controlling household debt.

And there are limits to what they can accomplish. The law of supply/demand dictates that if supply is cut severely, and demand remains the same, prices will go up. The length of the strike (as was stated) is what will matter here. My opinion is that while rate hikes do help with inflation caused by excess money supply, they may be useless in fighting inflation caused by supply drying up.

The FED told everyone exactly what the conditions for a rate cut would be about 12-18 months ago. It unfolded, as evidenced by job and inflation data. What would have been political, is if they had not lowered rates according to the data that they were presented, after stating explicitly what they were planning to do, well in advance.

The FED will not act to shore things up over a 1/4 -1% drop in GDP from where we are now, unless jobs get hit hard. And even then, they will wait for data, and then the impact will take time to work through the system. They already said they were not planning to go big on further cuts. Unless things get very dire, very fast, we should take them at their word on that.

[ASAP]

Originally Posted by DrVenture

This seems to be a good time to summarize the FEDs function. "The Fed's modern statutory mandate, as described in the 1977 amendment to the Federal Reserve Act, is to promote maximum employment and stable prices. These goals are commonly referred to as the dual mandate."

They are not tasked with helping people with poor financial literacy to make better decisions. They are not tasked with controlling household debt.

And there are limits to what they can accomplish. The law of supply/demand dictates that if supply is cut severely, and demand remains the same, prices will go up. The length of the strike (as was stated) is what will matter here. My opinion is that while rate hikes do help with inflation caused by excess money supply, they may be useless in fighting inflation caused by supply drying up.

The FED told everyone exactly what the conditions for a rate cut would be about 12-18 months ago. It unfolded, as evidenced by job and inflation data. What would have been political, is if they had not lowered rates according to the data that they were presented, after stating explicitly what they were planning to do, well in advance.

The FED will not act to shore things up over a 1/4 -1% drop in GDP from where we are now, unless jobs get hit hard. And even then, they will wait for data, and then the impact will take time to work through the system. They already said they were not planning to go big on further cuts. Unless things get very dire, very fast, we should take them at their word on that.

I am still a little confused here... you said unemployment is only rising due to shedding of excess covid capacity and excess hiring during that time. If that is true as you said, interest rate adjustments will have no impact on that since those jobs aren't coming back... keeping prices stable won't help the consumer after a 30% rise in goods over the past 5 years... so I still don't see how the current rate cut helps the average consumer. Lowering rates will further destabilize that... and like you said a strike could hamper that further.

[ASAP]

Originally Posted by dmatre

Almost no companies… other than those 4 out of 5?

Do you mind posting the 4 out 5 companies in Q2 that are showing organic revenue growth? Not earnings... i can play the balance sheet and P&L as much as the next guy... i can also merge and takeover a company and do stock buybacks as well... what I can not do is grow my business top line without accounting tricks...or if folks are not giving me money.